China And Cryptocurrency

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People don’t always lump the idea of China and its strict control issues with something as potentially volatile and uncontrollable as cryptocurrency. Why would China even consider it?

An economic powerhouse like China will always be looking for new ways to improve its monetary dominance, so we can see how China would be keeping a leg up on the extensive competition.

I’m just wondering whether the Chinese government’s interest in cryptocurrencies, particularly its own, will enable usage of the digital funds by the common people.

China’s Very Own Crypto

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Digital Yuan

So is this new crypto going to be separate from the cash Yuan or a replacement? Some sources are saying it’s to be a replacement for cash, rather like CBDC.

That idea is rather a chin-scratcher for me. What about the many citizens of China with no online access? Will they be given cards? Surely, cash will still be acceptable. I guess I’ll have to wait and see.

Why

Why China wants its own cryptocurrency could be argued. They want to stay on top of current technology, it involves a potential new revenue, new laws would mandate the world to adopt it, etc.

That last one has many concerned. If you want to buy or sell anything online with China in the future, you’ll have to adopt The Chinese Crypto. This is not the sort of thing that Satoshi Nakamoto had in mind, but we can assume (or can we?) that Satoshi was/is not Chinese.

Many people expected China to fully reject crypto as it can be a sneaky form of currency, hiding in a myriad of nodes across an invisible blockchain. Other governments banned its usage. And yet other governments would like to, but they know that it would be impossible to enforce.

Perhaps a bit of wisdom has permeated the Chinese government. They realize it is becoming more and more pointless to prohibit certain online activities when technology is such an enabler.

Whatever the reason, it quickly became a hardcore issue of the forefront of governmental interest after Facebook announced its intent for Libra.

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When

In October of 2019, the Chinese government announced that it would be creating a People’s Bank Of China digital currency. Although no actual date for the release was stated, experts feel it could be toward the end of 2020.

As an aside, in April 2020, China will have a new blockchain. I would say, “Go China!”, but I’m not as happy as all that. I love the Chinese people – not so much their government.

How

This is probably the most significant question. The People’s Bank has not revealed details about how it will instigate the new currency.

However, their new blockchain will be an astronomical accomplishment. Proceeding from there should be a cakewalk.

China And Other Cryptocurrencies

Huobi CEO wants to influence Chinese Policymakers on Bitcoin

Leon Li

Whether for the better or for the worse, the people of China owe much to Leon Li when it comes to keeping digital currencies acceptable in their nation. In 2013, Li co-founded Huobi, a digital exchange platform that remains one of the few crypto businesses to come out of China’s 2017 crypto crackdown unscathed.

When Li was informed that China was knocking down all manner of exchanges in China, he raced back to work from medical leave and had his team advise all investors to withdraw their funds. During this time he carefully briefed local regulators regularly and made sure to fully cooperate with all interrogations.

He employed other tactics, as well, for getting on Beijing’s good side. He hosted seminars and classes for officials, held conferences under government graces, and began consulting officials regarding Facebook’s Libra. Let’s not forget the fact that he made an in-house Communist committee for Huobi.

All this kissing-up to the powers-that-be saved Li’s business and made himself a trusted mogul in China. However, this has come at a cost of how he is perceived overseas.

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Where Does Bitcoin Stand?

Yes, Bitcoin is legal in China. Like most – if not all – other countries, there is no governmental support of the coin. It is not accepted as legal tender.

Nonetheless, Chinese citizens can own Bitcoin and invest and spend it online. Feel free to start here and click around for more information. You’ll need to click on the translate button if you aren’t fluent in Mandarin.

Laws That Change

Let’s face it, we’re talking about China. This is a country with people who are now forward-thinking investors wanting more freedom. The government does not like this.

Ever-changing laws in the great nation reflect government paranoia over losing control over the citizenry. This may seem ridiculous to the rest of the world, but the powers that be don’t always see clearly.

As I searched for answers online, I learned that you need to be careful to find the latest articles about what’s going on in China. Trends indicate that, like with many other governments, something new can go unnoticed at first.

Then the government studies things, changes laws, adds taxes, bans things, realizes that doesn’t work, changes more laws, etc. Who knows, give me a few months and you may read something new about China.

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Where From Here?

China and cryptocurrency have been fraught with a tenuous and unhappy relationship from the beginning. What the Chinese government may see as an infestation is generally harmless until they begin their paranoid analysis.

What do you think? Is China near and dear to you? Where will the laws change next?

Let us know your thoughts in the comments below!

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24 Thoughts to “China And Cryptocurrency”

  1. Rodarrick

    Wow! I never would have imagined in my wildest dream that a superpower country like China could be this much attitude towards bitcoin. I really value this post a lot and thanks so much for sharing it. In all honesty, I feel that if China is working bigger towards setting things up, then there might be a big news sooner than later. Thanks ks for sharing here

    1. Cattington

      Thank you for reading and commenting, Rodarrick. China is certainly full of attitude. ๐Ÿ˜‰

  2. Parveen

    Hey, I enjoy a lot while reading your article on China and Cryptocurrency. I found it is very useful to know about it. While reading I know that Chinese government announced that it would be creating a People’s Bank Of China digital currency. Although no actual date for the release was stated. You have done a grate work to know about china and crypto currency. 

    1. Cattington

      Thank you, Parveen. ๐Ÿ™‚

  3. Steve

    Knowing what I know about China’s government, I have a hard time believing that they would be in full support of Cryptocurrency unless they can fully control it. As you say in the post, they are not big fans of that which they can’t really monitor and that goes way beyond currency. I’m interested to see what happens with the digital currency you mentioned. That would certainly be a huge change and one that seemingly would lock a lot of the Chinese people out. Keep us posted and thanks for the article!

    1. Cattington

      Thank you for reading the article, Steve. I agree!

  4. Harish

    Your article is very helpful to know about crypto in china or china and cryptocurrency. While reading I know an economic powerhouse like China will always be looking for new ways to improve its monetary dominance, so we can see how China would be keeping a leg up on the extensive competition. Thanks for sharing your awesome ideas on China’s Very Own Crypto.

    1. Cattington

      Thank you for stopping by and commenting, Harish. ๐Ÿ™‚

  5. Sam

    I must admit I don’t know much about cryptocurrency and how it works. This makes it seem even odder to me that any country would adopt this as their main currency. It’s also strange as you mentioned that China would be interested in using this currency as it’s hard to control.

    It will be interesting to see if they actually start relying solely on cryptocurrency and how that works out for them. 

    1. Cattington

      Thank you for commenting, Sam. I agree with you.

  6. Jon

    This is really cool I did not know that China had its own cryptocurrency and that it was host to such different exchanges that could really change the way people trade in the country of China and the world. Do you think that the U.S. should have its own bank where you can get different currencies like cryptocurrency?

    1. Cattington

      Thank you for your comment, Jon. As for your question, I’d like to see the government, including banks, stay away from crypto, but that seems unlikely.

  7. Lalita

    Hey, Your guide is very useful for everyone like me. While searching for answers online, I learned that we need to be careful to find the latest articles about what’s going on in China. Trends indicate that, like with many other governments, something new can go unnoticed at first. Chinese citizens can own Bitcoin and invest and spend it online. Lastly, I hope that by reading your article, everyone will get to know about this china or cryptocurrency and will share their new experience with you soon.

    1. Cattington

      Thank you, Lalita! I’m glad you found the article useful.

  8. Eric Seil

    What an exciting takeaway from this article. I wasn’t aware that the Chinese government was focused on cryptocurrency. It’ll be interesting to see how it plays out later this year.

    Although I’m no fan of cryptocurrency, I think it’s a great approach to decentralizing currencies. I believe people should have more choices in what type of money they should use. It’s been a topic of interest in over the last decade- who knows if cryptocurrency becomes mainstream.

    Thanks for pointing out. I’m no fan of the Chinese government. But I hope things won’t go wrong in the case of cryptocurrency. I’m with the people of China.  

    1. Cattington

      Thank you for your comment, Eric. I agree with you in that I wish the people of China the very best.

  9. Iamlooking4answer

    Although I have not started owning any digital coins yet (was interested in Ripple), I do believe that digital currency will be the future of money. However, there’s still a lot of uncertainty around this. If China starts to adopt digital coin into all transactions, the world will starts to follow. We’ll just have to wait and see, or risk takers can take action to acquire digital coins. 

    1. Cattington

      Thank you for stopping by and commenting. ๐Ÿ™‚

  10. Paolo

    Hi! It’s exiting to see countries as big as China embracing crypto. But it also makes me a bit sad seeing how what seemed to be a way of doing transactions outside of the scope of governments is starting to become part of them as they gradually get into the game. And they will want to start to impose regulations.

    1. Cattington

      Thank you for stopping by, Paolo. You are spot on!

  11. Naksh

    It’s good that you found my website because so much more is going to happen in the near future with my new articles. the people of China owe much to Leon Li when it comes to keeping digital currencies acceptable in their nation. In 2013, Li co-founded Huobi, a digital exchange platform that remains one of the few crypto businesses to come out of China’s 2017 crypto crackdown unscathed.

    1. Cattington

      Thank you for stopping by, Naksh! Leon Li is most definitely a savvy businessman.

  12. Feji ben

    Its very hard to see people would share their opinions and ideas on certain things like this that would be beneficial to the public.for me i think crypto currency should be given a chance in the world to prove that they can be the next most secure and fastest way to do transactions, for chain I support the move they have made and I hope that should be consistent and follow through as it would very good to see that crypto currency launched and become fully functional.

    1. Cattington

      Thank you for stopping by and commenting, Feji. ๐Ÿ™‚

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