The People’s Bank of China bombed Bitcoin and cryptocurrencies. Again.


For a minute, it seemed that FUD was over. The People’s Bank of China contributed to the nationwide fight against cryptocurrency in the “Financial Knowledge Popularization Month”, People’s Daily Online Report from Beijing. Yin Youping, deputy director of the Financial Consumer Protection Bureau of the People’s Bank of China, said in an event:

“We remind people once again that virtual currencies such as Bitcoin are not legal tender and have no actual value support.”

Related Reading | “The Demise of China’s Bitcoin Mining”, 7 points of the article

In addition, Yin Youping classifies all cryptocurrency-related investments as pure speculation. He advised the public “Consciously stay away“Avoid unnecessary risks from virtual assets, and “Protect their “pockets.” There is nothing crazy about a bureaucrat fueled by laws. However, an interesting new work in China’s encryption puzzle.

Disclaimer: This article uses quotes and information from Google Translate. Small inconsistencies are possible.

What else did the People’s Bank of China say?

In addition to contributing to China’s crackdown on cryptocurrency, Yin Youping also responded to the “rebound” of China’s cryptocurrency trading. The People’s Bank of China will:

  • Work overtime until “Detect overseas exchanges and domestic traders.
  • Blocked”Trading websites, apps and corporate channels. “
  • strengthen”Policy advocacy,“Let everyone in China know the laws of this land.
  • Establish”Normalized working mechanism“And continue to crack down on cryptocurrency transactions.
  • maintain”High pressure situation.

The goal of the People’s Bank of China is very clear. It seems to work, Youping claims “The popularity of virtual currency transactions has fallen sharply.“The deputy director also encouraged the general public to report”Crime of illegal fundraising“To the relevant departments.

BTC price chart for 08/27/2021 on Bitstamp | Source: BTC/USD on TradingView.com

Does this provide insight into China’s encryption strategy?

In the post summarizing the case, Chinese reporter Colin Wu provided us with internal information that was not in the article. “Through blocking exchanges and strengthening policy propaganda, China’s popularity has dropped sharply. “

One of the surprising discoveries Chainalysis’s Global Encryption Adoption Report Is P2P transaction”A sharp decline“In China. At that time, we naively asked:

Why are the Chinese so aggressively abandoning P2P transactions? Will the “government crackdown on cryptocurrency transactions” lead to a surge in old P2P transactions?

this”High pressure situation“The People’s Bank of China thinks it may be the answer to these two questions. As far as we know, both are”The popularity of virtual currency transactions” and “the popularity of China” dramatically drop. China is hitting ordinary people no less than hitting their biggest industry.Bloomberg tried to explain their actions by definition “New China Model” As:

If China abandons the Silicon Valley model, what will it replace? Insiders say it will be less driven by founders and more China-centric.

Related Reading | China bans Bitcoin mining. How is the small hydropower station now?

We finished that article with more questions than answers. From”Why does China dwarf its largest industry and participants? The “China model” only depends on the scale?” arrive”Is their crackdown on large technology companies even related to their crackdown on Bitcoin mining?“And concluded:

There is only one thing we can be sure of: China is taking major coordinated measures in science and technology. And they seem to have a plan.

Maybe their plan is simpler than we thought. The People’s Bank of China may make it really difficult for ordinary citizens to access Bitcoin. Moreover, China will use propaganda and repetition to control and fear the unknown. One of Bitcoin’s prototype confrontation scenarios. A battle that Bitcoin will anticipate sooner or later.

Featured Image by Bruce Röttgers on Unsplash - Charts by TradingView





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