Former President Introduces Reason Behind Crypto Crackdown

[bitLeap]

Always believe that China has a reason behind every action. When they stopped mining, but in the end they really didn't want anyone to move and outperform the Chinese financial system itself. Even under any pretext, if only for the sake of centralized transactions, there is no need to prohibit the party providing free space for anyone to choose decentralized payments. The bottom line is that China doesn't want finances to flow outside of their control. Even for a penny, they would consider it a huge loss.

[Snappycoco]

I've heard that they are planning to unban the mining due to price surge. They also talked about the researching about unbanning crypto too but nonetheless,it doesn't matter anymore due to the fact that large investors doesn't want to play with china anymore. Migration of large mining industry players has already been done and theres no coming back to it. https://www.independent.co.uk/life-style/gadgets-and-tech/bitcoin-china-ban-mining-crypto-b1944928.html

[bitgolden]

With the introduction of CBDCs, the economy will reap numerous advantages like reduced costs, higher convenience and stability. They are more convenient and offer more flexibility than traditional payment methods. Businesses will also benefit from the digitalization of the economy. Small enterprises will be able to create a more effective and easier accounting framework.

There are lots of things I am yet to know about this central bank digital currencies. How is this CBDC going to function? Is it going to be a currency that will be issued out directly from the central bank to the people or is it going to be going through smaller banks to be distributed to the people? And then another thing is that I don’t really think that this CBDC will match up to the current digital currencies we have (or should I say decentralized cryptocurrencies), such as Bitcoin.

Why I think this is true is because with Bitcoin you can do any transaction to any location around the world, but is it going to be the same with this CBDC?  If the CBDC is going to be Fiat, then it’s going to only function within the country that owns it , and is not going to be a currency that you can send to someone else that is in another country.

[Silberman]

What the man is saying is true. I agree that a currency should function well as payment first and foremost. And while there are advantages in using Bitcoin, there are also reasons why it remains to be not the most convenient payment method.

But I don't think that China is a traditional economy or neither will J consider such fast rising economy competing with America and other global economy to be a traditional economy. China is basically trying to go out of the current wave of bitcoin adoption but rather want to push forward the yuan with the population that is a big factor and market advantage.

While China's economy is very much unlike other mainstream economies in the world in certain respects, I think I still consider it a traditional economy in the sense that it is still a fiat-based economy. China's economy is indeed unique. Its socialist market economy offers a hybrid approach which allows both capitalism and private ownership to exist and thrive alongside a larger and more powerful and influential state-owned business sector. However, at the end of the day, they share a common ground with the rest of the world's traditional economies. Theirs is the power and control of money. This is something they simply cannot let go. And that's the primary reason why China will never ever adopt Bitcoin as a currency.

On the surface the systems may look different but all the economies of the world are based on fiat currencies and a government which is more and more intrusive in the lives of their citizens, so while particular policies and practices may be different we see a similar end result, especially when it comes to the potential adoption of bitcoin, but that does not really matter since the best currency always imposes itself, we know this is a historical fact and it will happen again, just give it enough time.

[Ozero]

Well, it is true that Bitcoin is a bundle of both advantages and disadvantages at this point, but I don't think the reasons he stated were enough to actually warrant the banning of crypto in general. Though I guess the fact that it poses enough threat to actually damage their creation of CBDC's. I guess them banning crypto is actually acknowledgment in of itself of how crypto is actually helpful and useful for us users, but not for them who are the ones responsible for controlling the economy.

The former president of the People's Bank of China, in my opinion, did not express a clear position of the government regarding cryptocurrency and in this connection it recently banned mining and circulation of cryptocurrency. I think that China is preparing for the official launch of its digitized yuan and in order for it to work effectively, they are removing possible competitors, which is a decentralized cryptocurrency. In this regard, it was now beneficial to make such a decision.

[dothebeats]

China always has 'different' or 'better' views against the rest of the world. They always believe that their ideology, economy, and everything about them is far superior than their Western counterpart. If the Chinese believes they can produce something better than bitcoin or crypto, why then would they need to ban it if they can easily counter it, and that if their citizens would gladly support it? The issue here perhaps is control on the wealth that is currently circulating inside China. Bitcoin and crypto provides an easy avenue for the Chinese to take their wealth somewhere else, so the best solution for this is to ban it and prohibit their citizens from using it at all.

[carlfebz2]

China always has 'different' or 'better' views against the rest of the world. They always believe that their ideology, economy, and everything about them is far superior than their Western counterpart. If the Chinese believes they can produce something better than bitcoin or crypto, why then would they need to ban it if they can easily counter it, and that if their citizens would gladly support it? The issue here perhaps is control on the wealth that is currently circulating inside China. Bitcoin and crypto provides an easy avenue for the Chinese to take their wealth somewhere else, so the best solution for this is to ban it and prohibit their citizens from using it at all.

Being superior or making themselves to be the most powerful country in the world neither on West or  Easy it doesnt matter which they do have this kind of aim and mentality and decisions been made will be totally connecting out on whats their motive on the first place.

They could  really make out decisions for themselves without minding other factors or things around or depending or basing up into something.

They could make out decisions on whats up into their minds and if they do saw that it is totally countering the essence of centralization then
it wont really be surprising on how they do deal up with crypto.

[magneto]

These problems that they have raised are valid.

But are any of them enough to warrant a flat-out ban? I don't think so.

There is clearly some sort of agenda outside of the fact that network fees are higher etc. that is pushing this ban forward. Pushing CBDCs in lieu of decentralized cryptos is probably always a necessary thing for the central bank to do to maintain their control, and it's not just China.

[dezoel]

Well, I don’t think that is enough reason for them to completely ban Bitcoin from their country, they should have at least allowed it to stay and maybe look for ways to settings the weather would like it to be. I don’t really see anything bad when people are investing in Bitcoin, because right now Bitcoin is like my favorite investment. Even if I do not invest in any other asset, I am sure going to invest my money in Bitcoin.

So, I cannot imagine a scenario where the government in my country bans Bitcoin to the extent that I wouldn’t be able to have access to it. Even the CBDC that is being issued by central banks doesn’t really excites me ‘cause he said no need to me. Central bank digital currency is the same thing with Fiat, it has the same value on everything.

[Gozie51]

So, I cannot imagine a scenario where the government in my country bans Bitcoin to the extent that I wouldn’t be able to have access to it. Even the CBDC that is being issued by central banks doesn’t really excites me ‘cause he said no need to me. Central bank digital currency is the same thing with Fiat, it has the same value on everything.

The worse can be when the government ban bitcoin and try not to open up the digital aspect of their fiat currency. CBDC makes it a little easier though not the same. Like China did Yuan CBDC and some countries have adopted. But even country ban bitcoin, the P2P is not still active for traders is not a good one because the world has gone digital and payment platforms should also follow up.

[SquallLeonhart]

Most likely, the former president of the Central Bank of China referred to problems that modern cryptocurrencies have with the scaling that includes fees, network congestion and the speed of transactions.

But, I feel that they have got afraid of cryptocurrencies as cryptocurrencies must be a tough competitor for their CBDC. I mean there could be lesser possibilities that they would have bothered about the problems that you have mentioned. If they have not introduced digital yuvan, then there could be a possibilities as per your reasoning.

If they are really going by "survival of the fittest" theory, then what is the need for banning crypto mining?

If they work for a fair environment where people will have all the options to choose based on their own preferences then they must have taken a neutral stand against all cryptos activities by letting the fittest to serve their people.

[Silberman]

China always has 'different' or 'better' views against the rest of the world. They always believe that their ideology, economy, and everything about them is far superior than their Western counterpart. If the Chinese believes they can produce something better than bitcoin or crypto, why then would they need to ban it if they can easily counter it, and that if their citizens would gladly support it? The issue here perhaps is control on the wealth that is currently circulating inside China. Bitcoin and crypto provides an easy avenue for the Chinese to take their wealth somewhere else, so the best solution for this is to ban it and prohibit their citizens from using it at all.

And that is the issue, they cannot allow their citizens to move their wealth freely because if they could then they would get all of that wealth outside of the country and the Chinese government will collapse in a heartbeat, obviously they do not want that which is why they have forbidden the use of bitcoin and any other cryptocurrency, in a way I understand their position, they want to keep themselves in power and bitcoin is a threat to that, but making it illegal will not erase its existence and people will use it anyway to get their wealth out of the country.