China's plan to sideline bitcoin

[pooya87]

it is starting to turn into a trend where every country starts creating their own coin. it is just so simple to do so that they all want in because there is a lot of money in doing something like that and not even the government is going to overlook such large amounts of money.
but i don't think it has anything to do with "sidelining bitcoin" though. they want the control over a cryptocurrency which is the hype of our age and as i mentioned there is a lot of profit.

However, it is their idea to sideline bitcoin, because why don't they support the use of bitcoin?

It goes back to the question, does China understand what bitcoin is, if their idea of a coin is to be centralized and closely overlooked and controlled by the government?

that is how all the governments think. it is not just Chinese government that you are singling out in the whole world. every one of them want to have full control over the circulating money in the country and never like things such as bitcoin that are disturbing it.

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[Buttermellow]

I do not understand why a crypto that will going to be an alternative for fiat would be dangerous as what OP stated. I did not read the reason behind this except that only an image was shown showing people that has a placards for the freedom for cryptocurrency. This would be good but the risk is always there but to the extent as what OP has stated. 

[Sadlife]

Those token is what i hate to buy, chinese government has been an asshole lately colonizing islands banning products from the US, banning Philippine products even banning visitors from US and PH and lastly banning ICO. No one would definitely buy the token that's centralized and created to exploit and manipulate people.

[NJB18]

I do not understand why a crypto that will going to be an alternative for fiat would be dangerous as what OP stated. I did not read the reason behind this except that only an image was shown showing people that has a placards for the freedom for cryptocurrency. This would be good but the risk is always there but to the extent as what OP has stated. 

It's dangerous when people care so much on privacy. China as always wanted things to be on their way and everything under their control.

[malphite534]

bitcoin will not be stopped, although China rejects the existence of bitcoin because it can destroy their business between countries, but China will never be able to stop it

Because bitcoin has a huge money of investment to they like it to stop bitcoin to focus in their investment business to avoid investing in cryptocurrency.

[arpon11]

I reckon the People's Bank of China's does not appear to understand what the cryptospace is if their plan to sideline bitcoin is to issue a restrictive digital form of fiat. It will only be another token pegged to fiat that is similar to USDT. However, more dangerous.



The People’s Bank of China, the country’s central bank, plans to introduce a digital currency of its own. But unlike the decentralized blockchain-based offerings, this one could give Beijing more control over its financial system. It would enhance the PBOC’s ability to root out risks and crack down on money laundering. It could also give the government an unprecedented window into individuals’ private lives.

The currency would initially replace cash, PBOC Deputy Governor Fan Yifei wrote in an article earlier this year. According to patents registered by the central bank, consumers and businesses would download a mobile wallet and swap their yuan for the digital money, which they could use to make and receive payments. Crucially, the PBOC could also track every time money changes hands. Fan suggested in his article that banks would need to submit daily information on transactions and that there would be caps on transactions by individuals. The PBOC declined to comment.

The project was started by the former governor of China’s central bank, Zhou Xiaochuan, who retired in March. He decided to develop the digital currency in part to protect China from having to adopt a technology standard, like Bitcoin, designed and controlled by others.

Read in full https://www.bloomberg.com/news/articles/2018-12-13/china-s-plan-to-sideline-bitcoin

It is better for the market if China stay away from it at this moment as all the actions pboc actions against bitcoin has been bringing the market down.  If China introduce they own coin which they desire to have complete control over I don't think that is different from fiat and if the pboc did not have confidence on blockchain technology why not just keep using their current currency instead of intruding another digital currency.  I just go through the article and it seems in days to come people will start to interpret it in other to be able to influence the current price.

[Viceroy]

Let's face it - they have the right for doing so. I can't imagine what government
would like the idea of not controlling money. We need some fresh brains in the government first, then we can talk about decentralization.

[Halmater]

While such an initiative attempt would allow the bank and government to more strictly control on the financial system in the short term, such initiatives will increase the interest and power of bitcoin in the crypto currency markets and they will casuse an increase on price of bitcoin in the long term.

[juragane]

Wait, a digital currency for China? And the purpose of this is to protect China from foreign technologies? If I were a Chinese citizen why would I even bother using this digital currency? Of course I'll just do usual things when I do shopping because it does not make any difference because the government is still in control of it.

the Chinese government wants full control of their currency, this is understandable because China is conducting a trade war with America. So the Chinese government is still putting aside bitcoin from entering their country, but we can see the Chinese government is starting to adopt their version of Blockchain. In the future, China can dominate crypto currencies.

[budi691]

The Chinese Central bank body is very funny, but their people own a lot of bitcoin and use them too. Why do they feel is owned by others and controlled by a foreign country? I know they understand the bitcoin has no central issuing and controlling authority. At the end, they will still return to the bitcoin when all has been said and done. China government need to stop the real enemy of the people and not bitcoin,

maybe they want to disturb small-scale bitcoin owners, but with the strategy only those who have. bad concept, China tries to influence many parties with the development of bitcoin, but they themselves breed bitcoin for themselves.

[Blockchainer06]

China is not only ready to issue digital currency, but also has figured out how to issue, manage, settle accounts, and even how to establish the interaction between digital currency and various currencies. More importantly, these technologies have applied for patents, that is to say, they have been formed and protected. The next step is to apply for practical applications.

[kxz1498]

They want to make sure the currencies didn't bubble maybe.

[kelz1]

Any coin supported by china has to be regulated, hence there are two options. One is create their own coin like petro, or make a centralised one like ripple. Neo is regulated so it could do well there in place of bitcoin

[eaLiTy]

I reckon the People's Bank of China's does not appear to understand what the cryptospace is if their plan to sideline bitcoin is to issue a restrictive digital form of fiat. It will only be another token pegged to fiat that is similar to USDT. However, more dangerous.

The People’s Bank of China, the country’s central bank, plans to introduce a digital currency of its own. But unlike the decentralized blockchain-based offerings, this one could give Beijing more control over its financial system. It would enhance the PBOC’s ability to root out risks and crack down on money laundering. It could also give the government an unprecedented window into individuals’ private lives.

Crucially, the PBOC could also track every time money changes hands. Fan suggested in his article that banks would need to submit daily information on transactions and that there would be caps on transactions by individuals.  The PBOC declined to comment.

Bitcoin started as a noble cause which could take power away from the government with transparent transaction which cannot be edited, this was the biggest fear i had, if some countries take this noble concept and start their own private currency which could dent the privacy of every citizen as they will be having more power and could control everything and China being a dictator regime it is easy for them to implement these things as the voice of the citizens would not be heard, it is nothing but a centralized structure and they are planning to mine fiat currency without the expense of printing the fiat currency.

[qiman]

I am not surprised that there will be a digital form of Renminbi, it ss natural to have China move towards blockchain technology and want to control it and give it out to its people in the way it feels it is healthy too. Also decentralization of money feels like a very Alien thing to Chinese, although Chinese love digital currencies, playing the stock markets, gambling, speculating and also being 1st tier innovators in this field. I do not think the PBOC will get rid of Bitcoin but it will probably want to introduce all the cool technology associated with the blockchain and Ai, as China has a huge potential to create the fastest AI datacenters in the world with a population of over 1.4 billion RENS.  . The Chinese now are not content with just emulating others, they want to be no 1 in innovative tech, you just need to visit Shenzhen to see how huge tech is over there.

[bbc.reporter]

China found another reason to create their coin.

However, how would a Chinese state run coin help to stop the devaluation of the Yuan? It would only help if the People's Bank of China were to prevent their citizens from using bitcoin and altcoins.

Nothing will change. The users will always look for the right tools for their needs.



China’s central bank is developing a state-run cryptocurrency in response to Facebook’s Libra

China’s stance towards Bitcoin, and cryptocurrency in general, has been hostile—and understandably so. China tightened capital controls in the wake of a shock yuan devaluation in 2015 and has continued to implement measures to mitigate capital flight out of the country. Some of these measures include increased disclosure requirements for buying foreign currencies and tightened restrictions on corporate investments overseas.

Now, Facebook’s Libra with its base of 2.4 billion monthly active users, poses another threat to Chinese capital controls.

Considering Facebook is beholden to pressure from U.S. policymakers, it is in China’s interest to ensure Libra does not take hold in the country. Facebook’s services are already blocked in China and it’s unclear whether users outside of Facebook will have incentive to adopt Libra.

With approval from the State Council, the PBOC is working with market institutions to create a central bank cryptocurrency. A digital currency similar to Facebook’s could help China’s central bank maintain control over its economy.

Such an asset would pose few benefits for holders over the country’s already ubiquitous WeChat and Tencent digital payment options. Meanwhile, the black market trade of Bitcoin in China continues to thrive

Read in full https://cryptoslate.com/chinas-central-bank-is-developing-a-state-run-cryptocurrency-in-response-to-facebooks-libra/

[aad140386]

I think that the reason for such actions by the Chinese authorities is that for many years they tried to integrate the yuan into the system of international payments and thereby expand the use of the yuan throughout the world. For the yuan already sell gold, metals, oil and so on. The International Monetary Fund began to use the yuan as one of the reserve currencies. Bitcoin can destroy all the long-term work of the Chinese authorities on the integration of the yuan in the global financial system.

[Spaffin]

I think that the reason for such actions by the Chinese authorities is that for many years they tried to integrate the yuan into the system of international payments and thereby expand the use of the yuan throughout the world. For the yuan already sell gold, metals, oil and so on. The International Monetary Fund began to use the yuan as one of the reserve currencies. Bitcoin can destroy all the long-term work of the Chinese authorities on the integration of the yuan in the global financial system.

The fact is that the cryptocurrency is a real competitor not only to the Chinese yuan, but also to other currencies, including the dollar.  It is not for nothing that there is still very strong debate in the world regarding the legalization of cryptocurrency, because many governments believe that cryptocurrency can undermine their domestic economy.

[enhu]

Its their government, I'm not surprise if this will still get support from its people. Chinese are patriarchal and will follow what their government says like how a son obeys the father. Those few who will oppose are soon going to see that is for their country's welfare and will soon anyhow. But then they will find a way around, they are good at it. Outwit this system of theirs just so they can play BTC casinos. 

[jameswell]

China owns +95% of all crypto's on earth, so they don't care which one wins, they own them all, this is called a fully covered bet, they cannot lose.

bitcoin will fall below ripple in cap in 2019, the writing is on the wall, just like lotus-123, being first doesn't make you a winner forever, just once at the beginning

Hahaha, Bitcoin fall below ripple, dude are you serious?