The Central Bank of China tackles Bitcoin again
The Central Bank of China has expressed its opinion on Bitcoin through the voice of Yin Youping, the deputy director of the consumer protection bureau. The latter explained in an official communication:
“We remind the people once again that virtual currencies such as Bitcoin are not legal tender and have no medium of real value. “
The financial institution therefore invites the Chinese to consciously stay away from what it considers “pure investment speculation”. The Central Bank of China also confirms that it will strengthen its oversight of foreign marketplaces, and block Bitcoin / cryptocurrency trading sites and applications.
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Bad times for cryptocurrencies
As a reminder, the Chinese government spent part of the summer cracking down on the cryptocurrency mining industry. Turning words into action, he forced local miners to relocate, province after province.
And this particularly hostile positioning should continue, according to Yin Youpin. The Central Bank of China thus wishes to “maintain a situation of high pressure” to continue to suppress transactions related to cryptocurrencies.
FUD to prepare for the launch of the digital yuan?
The hostile attitude of the Central Bank of China has intensified as the launch of the “digital yuan” approaches. Designed as a way to compete with the dollar, the Chinese digital currency will be widely distributed on the occasion of the Beijing Olympics, which will take place in 2022.
For the Chinese government, it is therefore essential to maintain the status of its yuan – digital or not – by ensuring that other alternatives such as Bitcoin do not become too widespread in the country. This is why the central bank’s “FUD” seems to have intensified in recent months.
👉 To go further – China unveils the digital yuan white paper and confirms the use of smart contracts
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About the author: Marine Debelloir
Deputy Editor-in-Chief on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.