Bitcoin Forum

Do you believe China's policy change regarding cryptocurrency and blockchain, effectively endorsing and encouraging its people to learn and use crypto will result in China is replacing the USA as the financial center of world?

Regarding Bitcoin there is no changing of policy in China. The Communist Party is founded on absolute control of people and money, and any freedoms afforded by decentralized currency are totally unacceptable to them. What they still tolerate for now is crypto mining, for two reasons only. The first is that miners sell BTC for a fiat and pay taxes, and the second is that there is some surplus electricity that those same miners are buying. Also, the very lucrative production of mining equipment should not be forgotten, and given their cost, it is a big profit for the Chinese economy. All what is BTC-related and controllable is welcome so far, but BTC as a currency is completely undesirable.

What China has allegedly been working on for many years is a national cryptocurrency and if that project becomes a reality, the Chinese will adapt very quickly and no one will ask them for an opinion, they will be forced to use what the authorities impose on them.

China has been on track to become the world's largest economic power, but current developments will definitely slow the process, given all the accusations that China is charged with causing the pandemic by producing a virus in the lab, and fabricating data on the true scale of the epidemic in their country.

China will create its own digital currency,and will invest in it.

It's quite official now (https://www.zdnet.com/article/peoples-bank-of-china-kicks-off-digital-currency-trials/), they're in the middle of tests already.

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The Chinese digital currency is a double-edged sword. While it gets us a step closer to the adoption and interest in Bitcoin and other cryptocurrencies, I think a lot of people are going to say "Well, we already have a digital 'cryptocurrency' we are using and it's 100% legal, why try BTC out?". I can't wait until they start advertising it as a cryptocurrency built upon the blockchain tech and blah blah. It's going to be an interesting debate. :)

You confused three directions of discussion first, the relationship of China policy on Bitcoin, China policy on Crypto, and China policy on Digital money.

China policy on Bitcoin: the impact can be economic, by affecting the price, or it may be more difficult to mine, but there will be no full control.

China policy on Crypto: It may have an impact because many altcoins have small market capacities and can be affected severely.

China policy on Digital money: It is the pioneer first in this field, and many countries are moving towards digitization, therefore I believe that whoever reaches for the production of his first digital coins in a serious and effective manner may threaten the continuation of paper money.

When you say financial center you mean economic superpower? Both US and China are well ahead of the country so I guess it will remain like that for many years. You might have confused crypto like bitcoin with the total crypto outlook of China regarding crypto currency. They are encouraging its people to used their own digital currency, for all we all it has already taken shape in their own country. But it doesn't mean it encourages its people to go full cryptocurrencies like Bitcoin or Ethereum or XRP or whatever. It's very different.

How come adopting crypto trading will make China the new global financial center?Right now,only a few million people are currently using cryptocurrencies.Adopting crypto trading in China won't make or break anything.
The China policy on Bitcoin is pretty clear.Mining BTC and producing BTC mining equipment is OK,but BTC/altcoin trading is forbidden.You may ask why it is forbidden.Let me tell ya.Cryptocurrency trading is forbidden in China,because people were using cryptocurrencies as a way to export capitals outside the country,bypassing the  goverment restrictions about exporting money&capital.
I don't see the Chinese government lifting the crypto trading ban anytime soon.

I don't think China has declared any policy change regarding crypto usage in recent times. If yes, can you please share a link of the news?

What has happened is that, China is launching their own digital Yuan. The government employees of China are first to test that and slowly the same will be implemented across the country within this quarter.

CBDC of China will not help China in becoming the financial center of the world. It is not designed for this reason. CBDC in China is designed to reduce the government cost of printing money and to impose holistic administrative view on people's funds.

In any case, reasonable suggestions of the boycott still stay questionable, and it's impossible they will viably dispose of cryptocurrency exchanging totally. China is domestic to a huge number of bitcoin mining farms as a parcel of locales offer cheap subsidized power, making mining a beneficial venture.

I see even that the liberal kind of system or society are the best for bitcoin because most of such country's policy would be open minded  and not a kind of socialist ideology that would try to cage people with inhuman policy that only focus on government taking total control of the economy. If government take care of the economy, it means every identity and activity would be scrutinize by government but the America kind of democracy isn't the type that won't give citizens of the world at large the freedom of choice especially where the choice isn't against nature. I believe the US are more favoured.

There is news about China preparing for the digitization of their payments but I haven't hear them specifically encouraging people to use cryptocurrencies first. Since if they are talking about the "digitization of payments" they are talking about their payment processors like WePay or AliPay which have big ties in their government, the regulation and monitoring would be easier for them if they digitalized there payments this way. Maybe the crypto-industry is just somehow affected by this since it is related to China going digital but it is by no means their first priority on moving forwards. It's just good to see that even the crypto industry is just benefiting from this plan.

I think this will be better on the Altcoin Section.
It is not really bitcoin related just how you made the title.

Bitcoin discussion rule.

As of their digital currency, it will just be the same as their fiat.
We are talking about a communist country here so "freedom" is something they would shrug off.  ;)
They are enhancing their financial industry but not changing.

They have been implementing the digitalization for payments for few years already. With the help of those companies that's been granted by their government to operate and use their apps for the cashless system.

But, there's also the news about the CBDC which will be made in crypto that's been a hot news few months ago. I guess that's already the hint that they're very open to cryptocurrencies after all of the news that they've banned it in the past.

Personally i think bitcoin is basically legal in China On 5 December 2013, people's bank of China made its first step in regulating bitcoin , it is not deemed as legal tender, nor does it enjoy the same safety features as the Chinese Yuan. Now china was changed blockchain platform they are change system crypto market. More than that, financial institutions, such as banks, are banned from dealing with any cryptocurrency. The very important think crypto market research at cryptocurrency exchange and trading platform blockchain.

Lol I don't know where you saw this policy of China encouraging its people to make use of Bitcoin. The China I know very well wouldn't try that, their Communist party will never agree to that, because they like to control their people and they like to control everything and not just their people. Chinese people don't have much say in their country, their government controls everything and says what's meant to be done and what's not.

So, if you're going to tell me that such a government would create a policy that encourages their citizens to make use of Bitcoin, I'd say that's a big lie. If it does happen, then it's just a miracle, , or haven't you heard that they are creating their own cryptocurrency and they are almost done with it?

China like any government won't provide you with a concrete policy. 
Government don't generate profits. They take from someone else to give you free stuff.
If you uses bitcoin that is a big problem because supply of free stuff are being diminished.

They will manipulate, distort, and keep you guessing while tricking you to give up control of your bitcoin to exchanges (with lost of privacy and identity which is more valuable than btc)

once in exchanges that just like commodities and derivatives it can be easily manipulated. Ever wonder why OIL is free? and COMEX couldn't find bars to make deliveries?

LOL.

I believe China is fully on the side of controlling literally everything their citizen does. BTC is quite the opposite in fact of what they do, but if cryptocurrency entails only that of which is the cryptocurrency they are creating, then there's a chance. It's a 50 50 chance tbh, and it would take time, a lot of it. They are clearly trying to take advantage of the usage of blockchain system not only in their currency, since they have been pretty much researching seriously about how to implement it in other matters, hence you can see that they are quite pro of it actually.

It depends on how China fully uses the digital currency they are currently testing. Digital Yuan if I recall correctly? And if they, if ever, successfully manage to implement it properly, then they can pretty much fight head on with the US.

I've already heard of it before that China will create their own cryptocurrency and I'm not sure if they are doing it now. If China would create its own cryptocurrency will that be accepted globally like transacting to other countries using its own cryptocurrency and how it will be valued in terms of the global transaction? Within the country, it will be easier because you will be dealing with someone who also has the same currency as you do but dealing outside then the cryptocurrency needs to have it's own value as it should go for forex. But having all these China will still have their own ways to make this possible especially when they found out that it has plenty of advantages to them.

The People’s Bank of China (PBOC) was pushing to have their own cryptocurrency last year together with Facebook and that is Libra. That's might the reason they are banning Bitcoin there.

It will get listed on many crypto exchange platform and people will be ready to trade it. China are known for their versatility in creating goods and many of their goods are being marketed in many marketplace e.g Alibaba meaning if they create their own cryptocurrency, they will also make it a payment processors that their international customers can use instead of wire transfer that charge exorbitant fee. General, the coin will be strong and will even overtake many top crypto

For all i know from my latest findings, china haven't really adopted cryptocurrency and dosen't encourage her citizens to use bitcoin However, there are cryptocurrency activities which are not ban by china e.g crypto mining and this is so because they generate huge revenue due to taxes imposed on mining activities and about the digital currency being created by them, i think it's a way of having power above any rising currency

China has never been open nor actively endorsed the use of cryptocurrencies to its nation, although they remained to be as light as they could to the miners there. There were also rumors of CryptoYuan being in the works though I doubt that that will come to fruition--and this new policy certainly isn't the precursor to all these grand delusions of the outsiders on China.

With the whole world in turmoil, they are certainly pointing their interests towards making their country a superpower, greater than that of EU and US combined. Cryptocurrencies would be the least of their concerns right now to take advantage of the situation and the time, that's for sure.

I would not say that China is somehow loyal to cryptocurrencies. Given the various limitations with exchanges in the past, and plans to create your own state cryptocurrency.
As for the replacement of the United States as a financial center, I do not think either, the position of the United States is quite strong.

I think China is just good at mining bitcoin because of its man power, they have the largest population and they can mine huge amount of bitcoin compared to other countries. Adopting cryptocurrency in their country is not that hard to attain because Chinese people are all business minded and they are manipulated by money.

China will never replace US when it comes to being a financial center of world, sometimes you need a lot of factor to consider. We are still using USD as a default currency in such many aspects and Yuan is still not that recognizable when it comes to a world's currency.

Still US dollars are the one who are popular when it comes to cryptocurrency, they made it as a basis of every currency because USA is still dominating the world's economy although China has a lot of businesses. They are just good at mining BTC but not in manipulating and moving in the market.

People in China are no strangers to digital payments if anything, it’s easier to move around and shop in Shanghai or Beijing with an Alipay or WeChat Pay smartphone app than it is bearing a pocketbook filled with yuan notes. Now the Chinese government has begun a pilot program for an official digital version of its currency with the likelihood of a bigger test at the Beijing Winter Olympics in 2022. Some observers think the virtual yuan could bolster the government’s power over the country’s financial system and one day maybe even shift the global balance of economic influence.

China is making their own digital currency to challenge dollar and bitcoin so they will never change their policies regarding bitcoin regulation. China is a country with big economy, they wants their own currency in crypto world on which they have control. Bitcoin is decentralised currency so they have more focus on their own digital currency instead of regulation of bitcoin

The Covid19 pandemic will change global financial control rules. China appears to be the least affected by the superpowers.
factories are back in business. Chinese are ready to invest more and buy more.
The United States is less fortunate, the pandemic continues to strike hard, and many people lose their lives or lives.
China will have first crypto digital currency

Only time will tell if china will be able to surpass US when it comes to being the world financial stronghold. It is safe to say US is quite far with development but the fact that china is always open to adopt innovative changes is really giving them edge over other countries and that's why China keeps flourishing the more with each year passing. I believe it won't be long now before china rolls out their own Digital currency