Why is China not supporting bitcoin?

[Renampun]

The Chinese Communist Party dislikes any currency that could disrupt their financial system, and because of this, they discourage Bitcoin from being traded or transacted in their country, as they simply dislike the idea that it could undermine their control. they are more interested in developing stablecoins that can back their currency, which is why they are developing the digital yuan, a digital version of the Chinese yuan issued and controlled directly by their central bank. we don't know how long they will be so closed to Bitcoin, but what is clear right now is that the Chinese government just doesn't like it.

[viljy]

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If they want dedollarization, bitcoin is there for them which is a deflationary asset but the country is not buying bitcoin.

China has that hidden agenda?

It's obvious. Even at first glance, it is clear that most of bitcoin is controlled by American owners, either corporations or those associated with American capital. Even Satoshi's bitcoins are probably under American control, since there are opinions that bitcoin is an American project. The widespread introduction of control over the origin of transactions and the risks of recognizing them as illegal, often for political reasons, completely negate any advantages of bitcoin over the dollar for international settlements. Well, the dollar is already a toxic asset. That is why the share of the yuan is growing in international trade. So any hint of American control of bitcoin is a red flag for China.

[SmartGold01]

One thing we should also note that the Chinese are always smart and they wouldn’t what would serve as a competition to their currency, I mean to their yuan and they are trying everything possible just to protect their local currency and not wanting to be that competitive with any other digital currency or even wanting to stocks their yuan into bitcoin that is so volatile which can lose value at any given time.

[free-bit.co.in]

If they want dedollarization, bitcoin is there for them which is a deflationary asset but the country is not buying bitcoin.

It would be great if the world agreed to use bitcoin as a global currency but honestly, Bitcoin does not fit with China's idea of ​​dedollarization.

Because they can't control bitcoin and don't hold much of it. That means even if bitcoin replaces the USD and becomes the global currency, the idea of ​​de-dollarization will fail and be counterproductive if the US holds the majority of bitcoin. Furthermore, bitcoin replacing the USD and becoming a global currency will not bring any significant benefits to their economy nor will it be able to promote their yuan on the international stage.

So if we put ourselves in their shoes, we can say that they were right not to use bitcoin to serve the dedollarization process.

[Danica22]

I think more simply than most people, I think it's not the right time for them to start legalizing and accepting it.

We need to be realistic that bitcoin or crypto although considered as the technology of the future, the future of finance...But today, most of them are used only as speculative investments. They have no outstanding practical applications in life and do not play an important role in the economy.

Not to mention managing them is very difficult and challenging, while China is a country that does not want to lose control of anything in its country. So it's not too hard to understand why they didn't rush to join the race or try to create their own game.

[Nothingtodo]

One thing we should also note that the Chinese are always smart and they wouldn’t what would serve as a competition to their currency, I mean to their yuan and they are trying everything possible just to protect their local currency and not wanting to be that competitive with any other digital currency or even wanting to stocks their yuan into bitcoin that is so volatile which can lose value at any given time.

You are absolutely right, China is a nation that does not use any products other than its own.  China will not decide to use the digital currency Bitcoin because they will use the domestic currency Yuan and if they use Bitcoin it will have a negative impact on their currency. If the Chinese have advanced thinking that using Bitcoin will have a negative impact on the dollar at some point, then they have also considered that using Bitcoin may have a negative impact on their local currency, the Yuan.

[Minor Miner]

Do you know which government holds the largest gold reserves in the world? That is the United States, they hold more than 8 thousand tons of gold and stored at 12 branches of the Fed. Gold remains the main asset in their national reserves.

Additionally, bitcoin is not part of the US strategic national reserves. It has never been recognized by the Fed or Congress, it's just property held by the US Department of Justice and they can sell it anytime they want. It has not yet been officially added to the US national strategic reserve, don’t let Trump mislead us due to our lack of understanding.

Most national reserves in the world today are mainly gold, government bonds and foreign currency. And China is simply reducing its holdings of USD and US government bonds by replacing them with gold and other foreign currencies like the euro.

There is not much difference between the strategic reserves of countries, including the US and China.

Yes, but under Trump's administration, I don't think that they are going to sell Bitcoin, they even have increase their holdings

https://intel.arkm.com/explorer/entity/usg

And they are in a race with China. The only thing is that China seems to hold their holdings in secret. And with that, I still think that they've support Bitcoin in every way they can they just don't want to let the world know.

Yes, the Trump administration has a friendly attitude towards bitcoin and cryptocurrencies. They probably won't sell it but they won't stop the next administration from selling it and that means the US never had bitcoin reserves as many people mistakenly believe.

Neither the US nor Chinese governments buy any bitcoins, all their bitcoins are confiscated from criminals. How can this be called a bitcoin accumulation race between them?

If they don't want to spend the money to buy it, if they don't really want to add it to the national strategic reserve, they will sell it sooner or later when the time is right.
I don't believe the US wants to support bitcoin until they add it to their national reserves.

[YOSHIE]

I know China accept bitcoin as a property but their government is very hostile to it and they prefer not to have bitcoin reserve.

Have you ever heard the saying "throw a stone and hide your hand" and another saying "there are shrimps behind a stone" China is cunning and the US is equally cunning, the public knows they are attacking each other economically, the reality on the ground is not like that. they are reliable economic role players, that is their trick to outwit the world economy, Bitcoin is their reliable weapon.

You can look for the most asset data and Bitcoin adoption, none other than China and the US, that's the game for countries that have economies, they have 1000 strategies to develop their economy, remember Chinese news does not support Bitcoin, that is their strategy and trick to make Bitcoin prices fall, so they can buy large quantities at cheap prices.