[2018/07/11]Isn’t Chinese Government Optimistic About Crypto?

[johnine]

The Chinese government has openly funded blockchain projects in China, which were born and created in China. Its policy regarding cryptocurrencies and blockchain projects is nearly identical to its policy pertaining to Western social media platforms, search engines, and content sharing sites.

China banned Google, Facebook, and YouTube to allow Baidu, WeChat, and Youku to dominate the local market. Similar to that policy, China has expressed its support towards platforms like VeChain, Qtum, and up-and-coming blockchain projects that were created in China and are based within the country.

Analysts have speculated that the Chinese government had banned crypto trading to enforce strict capital controls, primarily to prevent the Chinese yuan from leaving the country. While the ban could be reversed if enough demand is created by local investors, it is unlikely that China will unban crypto trading in the near future, as its ban was never really about crypto but its strict capital controls.



Source: https://www.ccn.com/experts-fear-china-losing-90-control-over-bitcoin-market-forgetting-govt-ban/

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[gentlemand]

China banned Google, Facebook, and YouTube to allow Baidu, WeChat, and Youku to dominate the local market. Similar to that policy, China has expressed its support towards platforms like VeChain, Qtum, and up-and-coming blockchain projects that were created in China and are based within the country.

This is the aspect that interests me the most.

Obviously no Westerner gives a fuck about using some Chinese social media platform. Everyone on there is Chinese. The content is what attracts people.

However money is universal and everyone speaks that language.

Is it possible China would try to develop home created stuff and then get the rest of the world excited too? Would everyone outside China buy it? The Chinese know how mindless and greedy everyone is so that's a yes.

[Slow death]

The Chinese government has openly funded blockchain projects in China, which were born and created in China.

of course, because it is easier for the Chinese government to control

China banned Google, Facebook, and YouTube to allow Baidu, WeChat, and Youku to dominate the local market.

to allow Baidu, WeChat, and Youku to dominate the local market?

I do not think that's the reason, I think because of the gloomy political system that the Chinese government has, they want to control everything, for that reason they will not allow foreign networks from abroad

Analysts have speculated that the Chinese government had banned crypto trading to enforce strict capital controls, primarily to prevent the Chinese yuan from leaving the country. While the ban could be reversed if enough demand is created by local investors, it is unlikely that China will unban crypto trading in the near future, as its ban was never really about crypto but its strict capital controls.

I have many doubts about this. japan, usa, malta accepted crypto

[magneto]

While the ban could be reversed if enough demand is created by local investors

Very unlikely.

Strict capital controls have always been in place in the economy, and there is absolutely nothing surprising here with similar controls over bitcoin and crypto to prevent capital outflowing from the country. Even if there is demand, which there is, a reversal of the policy is unlikely. Just look at the limits placed on USD exchanges. Even though there is a huge demand for USD, there is still a per year limit (i think $50k a year) for exchanging local currency to foreign currencies.


China could well be supporting local founded crypto and bitcoin businesses/projects by driving pretty much all foreign ones out. A government crypto program could even be possible. They have demonstrated interest in blockchain, but still, don't expect foreign ICOs or exchanges be allowed to operate within the country any time soon.

[Kakmakr]

Some people put some statistics out there that transactions out of China has declined to only 1% in recent days. Most of their Bitcoin exchanges have been closed down. So they are trying their best to stop "Capital Flight" in their country. 

On the other hand, Tesla are busy with a massive Tesla manufacturing facility in China as a counter to the influence of the trade wars against the USA. 

It is all about control for them and they know they cannot control Bitcoin, so they target the centralized onramp services that are under their control. 

[Lucius]

China is only optimistic with what is in their interest, and decentralized world currency certainly is not something that they can support. If they block services like Facebook or YouTube, then BTC does not have any chance in their country. On the other hand blockchain is something which is interesting for them as it is for the rest of the world, so if there is any cryptocurrency in China it must be 100% under control of communist Party.

I think we always need to keep in mind what kind of system is in power there, relationship towards cryptocurrency such as BTC can hardly be changed while communism is in power.

[Rustamm]

China has always tried to choose its own path of development and its own approach to all things and phenomena. It is necessary to recognize that much they have achieved thanks to this particular approach. In the issue of crypto currency, they are trying to maintain their own crypto currency, especially centralized. Back in September of last year, before imposing its restrictions and prohibitions on the crypto currency, the Chinese government clearly announced that it considers the decentralized crypto currency to be a hurdle for the existence of its economy, since it can lead to uncontrolled withdrawal of money outside the country. Well, there is nothing to blame them for. Everyone protects their interests on the market.

[cryptofonia]

Chinese government has registered all 41 patents that constituted the framework for to launch its own state cryptocurrency. And it's going to be a case, earlier or later.

[huhhuh18]

Chinese government will eventually bring forward a clearly set regulations about blockchain and crypto some day in the future. They provide support for crypto in different ways just that they've not openly allowed its activities to go on in the country. For instance, why do they even bring a monthly review of best performing coins. What's their business with crypto in that way if they hate crypto? I think they're still researching and considering it so they'll one day make available their final stand on it.

[hatshepsut93]

I don't think that China is interested in "crypto", they are interested in centralized or private blockchains that can somehow improve their businesses or just attract investments from outside even if they fail later. How they've treated Bitcoin and cryptocurrencies all these years clearly shows that their government despises decentralization and freedom, and I doubt they would change their minds unless they will see some huge benefit for themselves. If China is fine with banning Google, they shouldn't have trouble with continuing to crack down on cryptocurrencies.

[orions.belt19]

I don't think that China is interested in "crypto", they are interested in centralized or private blockchains that can somehow improve their businesses or just attract investments from outside even if they fail later. How they've treated Bitcoin and cryptocurrencies all these years clearly shows that their government despises decentralization and freedom, and I doubt they would change their minds unless they will see some huge benefit for themselves. If China is fine with banning Google, they shouldn't have trouble with continuing to crack down on cryptocurrencies.

They certainly have shown some interest for blockchain technology and I think they plan on using it in order to gain money. China always finds ways to exploit money and as long as they get some financial gain from it, then expect that they’ll be interested. On crypto itself, imo they would rather stray away from it since it will just be a hassle on their part. I’m betting that China is no big fan of decentralization either.

[Betwrong]

China is only optimistic with what is in their interest, and decentralized world currency certainly is not something that they can support. If they block services like Facebook or YouTube, then BTC does not have any chance in their country. On the other hand blockchain is something which is interesting for them as it is for the rest of the world, so if there is any cryptocurrency in China it must be 100% under control of communist Party.

I think we always need to keep in mind what kind of system is in power there, relationship towards cryptocurrency such as BTC can hardly be changed while communism is in power.

I strongly agree with this. Banning YouTube and Facebook is a not forward-looking move which prevents Chinese people  from learning and communicating with other cultures. This looks more like what North Korea would do (which they certainly did) and it's a pity that China, or Chinese government, to be more precise, is similar to them in this regard. I doubt that they will manage to ban all crypto platforms except for the Chinese ones but even the intention to do so is hideous. Luckily for them, Chinese are not so brainwashed as North Koreans and I'm sure they will overthrow this communist government sooner than one might think.