In recent years, China declared all crypto currency transactions illegal.
Perhaps feeling threatened by BTC, it seems that e-CNY, is designed to replace the cash and coins already in circulation in China. It is not a cryptocurrency like BTC, in part because it’s controlled and issued by a central bank (so by a central government). What’s your opinion on this? And how such a move can have consequences on this bearish market?
I believe in the coming years we will see more and more crypto centralized government coins coming that’s for sure.
The consequences for the market might be positive since it shows crypto is here to stay? But also negative since it shows the up and coming regulations
But also china banned crypto already for so many times no right…that’s kind of the beauty of it that they cannot ban it
China has been trying to replace everything what the other part of world uses. Just like they banned facebook, and they launched their own social media. They reportedly banned BTC many times in the previous 10 years also.
With E-CNY, we totally lose decentralization, so from a crypto perspective it brings no value to me. E-CNY can have their own utility (for example payments with the social media plaform), but this value will be a local one only in China, it doesn’t bring us anything extra.
@TamasH I agree. I lived in China for 3 years and it’s true that they have their own version of everything. However, I am afraid that the rise of E-CNY could be potentially dangerous from a crypto perspective: China is not only working on a digital version of a centralized coin, it is also working on a new, unique, and paradoxical approach to blockchain: it is trying to mix the decentralized nature of the technology and the highly centralized nature of the Chinese political system. While blockchain technology is essentially decentralized, regulations in China have aimed to guarantee state control over its development and application.
Exactly. This is also my major concern.
One thing I believe china is one of the countries that repeatedly give bad news for the crypto market, and in the last few years they even relentlessly search various forms of Bitcoin mining in china. I see from this side the spread of bitcoin crypto from Chinese miners is starting to decline and the impact of news from them is also getting smaller.
I recently heard that their own country is making their own crypto and blockchain, I think they want to keep their money in their country.
Yes, there is a clear political plan behind this “I want to keep my money in my country”: China’s cryptocurrency ban is part of a new trend in Chinese economic policy toward greater state intervention, they always intervene, and also the crypto case is something that flows into their “common prosperity” campaign.
On one hand, the People’s Bank of China argues that its ban on cryptocurrencies is to curtail financial crime and prevent economic instability. But the reality is that the ban is facilitating capital flight from china markets, bypassing conventional restrictions.
Thanks for the further explanation. I feel that it might look good to give exposure to cryptocurrency with this E-CNY, but they will present a totally fake image of it, since it will not act how a crypto should act due to its regulation. I say lets wait first what will happen with it, I can easily see this as a desperate move from the government, and it can easily fail due to lack of attention from the citizens. As I read in the article, analysts also doubt wheter this will go mainstream in China.
That’s what I think a lot of money escapes from the Chinese market through conventional means, there are always those who use the weakness of the policy to their own advantage. On the other hand, China’s capitalism towards bitcoin is starting to decrease and move to a crypto-friendly country. Maybe I could say the good side or the bad side, but all I want is fair decentralization.
True. They are already testing it, since they recently launched an app to allow users in some different chinese areas (major cities such as Shanghai and Beijing included), to sign up and use the digital currency. Behind the project there are two giants (Tencent’s WeChat Pay and Alipay, which is run by Alibaba affiliate Ant Group) and they are pushing very hard for this.
I have a lot of chinese friends that explained to me that there is still friction to use digital yuan, not among the youngsters, but among the elders, since you have to download a third-part app, sign up and lastly topping up your wallet.
I don’t think so, at least not now. The chinese government is introducing even more tighter regulations on crypto and stablecoins due to the collapse of the Terra ecosystem.
Everything China does is to control its people , I think China have banned BTC because it wants to bring in CBCD, that may be one reason, or the want to accumulate BTC but are lying by saying they are banning it, you cannot trust anything china says.
That’s great for protecting and making rules tougher for stable coins. Since the collapse of terra we’ve seen a lot of dips in other coins, and a pretty strong scare for all stablecoins. I hope the exchange will improve the rules so that all incoming fiat has the appropriate value, and guarantee to exchange the money for the appropriate amount.