The Chinese government announced on Tuesday a new series of measures aimed at limiting the use of bitcoin. Cryptocurrency is now banned from financial institutions, banks and businesses.
Beijing does not see the bitcoin with a very good eye. China has decided to take drastic measures against non-fiat currencies. In a recent government statement issued by the Communist Party, we can read: “Recently, cryptocurrency prices exploded and then fell, and speculative cryptocurrency trading has rebounded, seriously threatening the security of people’s property and disrupting the normal financial and economic order”. Without “Real value” Beijing believes, bitcoin, ethereum and others are therefore partially prohibited in the territory.
Not forbidden, but almost
Concretely, crypto currency exchange platforms are now banned in China, and banned from commercial services like banks, businesses or financial institutions. Individuals, on the other hand, retain the right to own cryptocurrency. Note that attempts to ban bitcoin are not new in the country. In 2017, mining was prohibited via a series of measures that had never been applied by Beijing. Today, China is the country where we find most minors.
Internationally, this announcement caused a new fall of bitcoin, which had painfully recovered after a black week, when the currency had lost 40% of its value (going from $ 60,000 to $ 40,000). According to some analysts, Beijing’s distrust of bitcoin could be explained by a plan to create its own non-fiat currency, like theIndia, which has already taken steps in this direction. In addition, the ban on cryptocurrencies could also allow the Party to regain control over the country’s financial market.