"BTC not a currency per se but can be an alternative asset" China

[jaysabi]

China saw an opportunity with bitcoin in the past, they just shrugged it off because it either is still valued lesser, or because of the news I saw 2 years ago where they are supposed to digitize the Yuan currency. Then again it just shows that with enough encouragement, a government repulsed by the idea of cryptocurrencies can be made to change mind when given the benefits and opportunities that it can bring to their country This will definitely expedite bitcoin's growth and ultimately, the global adoption we are looking for.

The digitalisation of Yuan currency is not going to make China more than what it will be today because it is also going to be centralised, it won't be decentralised  like bitcoin. USD is like a decentralised currency and bitcoin standing in crypto space and Yuan as cryptocurrency won't be placed in that, it won't be in use by all.

This is not true at all.  The digitization of the Yuan will make China a much more potent economy on the international stage and weaken the USD as a global reserve currency by creating a major competitor that other nations will want to use to get out from under the thumb of the US, especially when it can be used to evade US sanctions.  Frankly, nobody is going to care whether the currency is centralized or not.  Decentralization is not going to be the major pull.  If it was, you'd already see much wider bitcoin adoption.

[tygeade]

In an interesting turn of events, China's tone on BTC has "softened". Who was expecting this change in tone? Not me. Not after all the crack downs on exchanges or ICO bans and the works they are doing with their CBDC.

People's Bank of China deputy governor also said they will be looking to craft regulations to prevent speculations of BTC investments. They will most likely convene meetings with traditional companies that are interested.

How do you see this affect BTC and cryptocurrency in general?

This is a good change, hopefully it’s going to help in bringing a lot of positive changes to the cryptocurrency community. Once that they have done something like this, a lot of people in china will now start owning the cryptocurrency assets of their choice without the fear of being punished and the cryptocurrency businesses in that location will start flourishing, and that’s also a plus for the cryptocurrency community, and the miners won’t be disturbed in any way.

So, this is really a good change that we are seeing, although I did hear that even at a time they decided to ban bitcoin, they couldn’t ban miners in that location, rather they made it difficult for them to sell the coins they have mined.

[wxa7115]

Probably due to the introduction of the digital yuan.

They want to change the public opinion on digital assets in general. However, what they don't want is people adopting BTC as a form of digital currency.

Essentially, it's a compromise that they've reached. They're fine with people using BTC as a long term store of value so long as it doesn't directly compete with CBDCs - which is actually good news for BTC given that it can have a place coexisting with fiats.

But it is a dangerous compromise for them, the more people adopt bitcoin the more it will be used as a currency, after all taking into account the bitcoin that still has to be mined and that now a great deal of it is on strong hands that will most likely never let it go the amount of bitcoin available to the general population is too low.

This means that it is unlikely they will hold it long term as what it is the point of holding just a few hundred of dollars worth of bitcoin? You could just spend it and if that is the attitude the new adopters of bitcoin will have you can be sure it will be a threat to all of those centralized digital currencies.

[mamahdedeh]

Probably due to the introduction of the digital yuan.

They want to change the public opinion on digital assets in general. However, what they don't want is people adopting BTC as a form of digital currency.

Essentially, it's a compromise that they've reached. They're fine with people using BTC as a long term store of value so long as it doesn't directly compete with CBDCs - which is actually good news for BTC given that it can have a place coexisting with fiats.

But it is a dangerous compromise for them, the more people adopt bitcoin the more it will be used as a currency, after all taking into account the bitcoin that still has to be mined and that now a great deal of it is on strong hands that will most likely never let it go the amount of bitcoin available to the general population is too low.

This means that it is unlikely they will hold it long term as what it is the point of holding just a few hundred of dollars worth of bitcoin? You could just spend it and if that is the attitude the new adopters of bitcoin will have you can be sure it will be a threat to all of those centralized digital currencies.

I think it's still a long way off if BTC will be able to coexist with Fiat, even though both will use the same system, but Fiat can only be used as a transaction tool. different from bitcoin whose price is getting higher. From this I only see the reality that until now bitcoin is only effectively used as an investment tool

[sapnu]

I think it is China's strategy on how they can slowly become the most powerful country in the world. As the digital yuan gets produced, they intend to change the public's opinion with regards to digital currencies. They might compromise a bit as people gets attracted much more into bitcoin than the digital currency they are producing but it is pretty obvious, they still have something hidden that they will produce or conduct in order for the digital yuan become the central currency for the country. They are not really mistaken about having bitcoin as an alternative asset since most of the people nowadays functions their bitcoin in that way.

[RealMalatesta]

they still have something hidden that they will produce or conduct in order for the digital yuan become the central currency for the country.

America has already confirmed this like China wants to rule the entire world in next 10 to 15 years. So, we cannot simply move away from this like they are not having any hidden agenda. Only time could clear all these.

They are not really mistaken about having bitcoin as an alternative asset since most of the people nowadays functions their bitcoin in that way.

Yeah, if I remember correctly by 2014/2015 itself most European countries recognized bitcoin as digital asset. Now people are ready to have bitcoins as an asset and then it may be time for all other governments. If China's stand on bitcoin enlighten my government, at least I will have peace of mind with my bitcoin savings .

[awik p]

I think it is China's strategy on how they can slowly become the most powerful country in the world. As the digital yuan gets produced, they intend to change the public's opinion with regards to digital currencies. They might compromise a bit as people gets attracted much more into bitcoin than the digital currency they are producing but it is pretty obvious, they still have something hidden that they will produce or conduct in order for the digital yuan become the central currency for the country. They are not really mistaken about having bitcoin as an alternative asset since most of the people nowadays functions their bitcoin in that way.

In this case, digital currency seems to be specifically for buying and selling tools, which until now has not been obtained from bitcoin, which tends to be used as an asset to get abundant profits. From this point of view, we can read China's smart steps in responding to the changing times

[noorammak]

China has been silently supporting cryptocurrencies and Bitcoin for many years. China has crypto projects, one of the major ones we know of is NEO. They have the largest Bitcoin mining plants in the world.
Chinese people are banned from trading Bitcoin but are not forbidden to own them.

[AndySt]

I think it is China's strategy on how they can slowly become the most powerful country in the world. As the digital yuan gets produced, they intend to change the public's opinion with regards to digital currencies. They might compromise a bit as people gets attracted much more into bitcoin than the digital currency they are producing but it is pretty obvious, they still have something hidden that they will produce or conduct in order for the digital yuan become the central currency for the country. They are not really mistaken about having bitcoin as an alternative asset since most of the people nowadays functions their bitcoin in that way.

In this case, digital currency seems to be specifically for buying and selling tools, which until now has not been obtained from bitcoin, which tends to be used as an asset to get abundant profits. From this point of view, we can read China's smart steps in responding to the changing times

In any case, the digital yuan will occupy a privileged position in the Chinese economy, because it is one of the forms of the state fiat currency. I don't think that bitcoin and the digital yuan will be opposed to each other, because they have different fields of activity and different areas of application. Therefore, if bitcoin retains its rights as a digital asset in China, then it has a good future in the Chinese economy. A lot depends on the status of bitcoin in other states and I don't think China will ban bitcoin if it is allowed in other states.

[bitgolden]

In an interesting turn of events, China's tone on BTC has "softened". Who was expecting this change in tone? Not me. Not after all the crack downs on exchanges or ICO bans and the works they are doing with their CBDC.

People's Bank of China deputy governor also said they will be looking to craft regulations to prevent speculations of BTC investments. They will most likely convene meetings with traditional companies that are interested.

It's a very fairy tale story type of deal what China is doing with crypto. I hate china as much as the next guy for all the things they are doing and how they are managing their nation, but when it comes to crypto they have turned 180 degrees so that is a good thing for us. This doesn't make them a good nation, but at the very least it would make them a crypto friendly one and we need something like that from every nation.

I remember clearly when there was talks about how they were planning on banning bitcoin all together, and loving some other coins like EOS which is down from where it was, and they were even against miners for a while. Looking at how they are right now, I can see that they are doing very well and they will probably keep doing very well for a long time as well. Crypto should be supported in every nation, there is no exceptions.

[wxa7115]

I think it is China's strategy on how they can slowly become the most powerful country in the world. As the digital yuan gets produced, they intend to change the public's opinion with regards to digital currencies. They might compromise a bit as people gets attracted much more into bitcoin than the digital currency they are producing but it is pretty obvious, they still have something hidden that they will produce or conduct in order for the digital yuan become the central currency for the country. They are not really mistaken about having bitcoin as an alternative asset since most of the people nowadays functions their bitcoin in that way.

It is obvious that China is playing a very long term game against the US, they know they cannot break the power the US has built during decades in a short amount of time and they are using every tool they have at their disposal to achieve this.

And even if they see in bitcoin a potential threat to their own goals the fact that is independent from government control means thy are not as opposed to it as we may think at first glance, and when we understand the US dollar is the most dominant currency at the time this means the country that is at the most risk if bitcoin becomes a currency used in our everyday lives is the US and not China, which means they are not afraid to show some support while the US is terrified about the future prospects of bitcoin as a currency.

[bekti3]

It worries me when China has a hard stance, but it worries me even more when they speak softly. Is there still a ban on electronic trading of crypto for citizens?

My interpretation is that they have realised that the country has a lot to gain from backing bitcoin in some form. Countries that intend to grow at a fast pace or are trying to reanimate their economies catching the fintech and alternative assets train should be taking this approach.

the point is to improve the exchange system, every country must make peace with the Bitcoin exchange. they don't need to interpret Bitcoin from a negative angle, because that's a gap that will later be used as one of the drawbacks of state integrity. be it China or America though.

[so98nn]

Ah! Thats like a magic of bitcoin one more time spreading through the air. This is not the first government or central bank who changed their minds over the crypto currency through the past. We have seen same thing happening with the Nigeria, India, Brazil, Bangladesh and more other countries to name. China on the other hand holds most of the mining power. May be after the recent blackout China Bank realised the power that they are holding in their hands. They know very well now, they can stop the whole bitcoin economy or they could move it away with their mining operations. The income mostly getting driven into the China, thus more taxes and thus more power to banks. This could be the thought process behind all this. It's good that they are changing their minds, it will help flourish the crypto market more effectively.

[suzanne5223]

It's a very fairy tale story type of deal what China is doing with crypto. I hate china as much as the next guy for all the things they are doing and how they are managing their nation, but when it comes to crypto they have turned 180 degrees so that is a good thing for us. This doesn't make them a good nation,

Footing the country (China) government rules, regulation, and mode of operating the country China was a communist country so I don't think the way the country is been manage should surprise you or anyone else.

but at the very least it would make them a crypto friendly one and we need something like that from every nation.

I don't know where you get the understanding that the Chinese government is crypto friendly cause the last time I checked they are not but their tone softened towards Bitcoin because they didn't expect the institutional investor will invest in Bitcoin or use Bitcoin to raise fund for their Bank of Construction or Agriculture last year I think.

[wxa7115]

Ah! Thats like a magic of bitcoin one more time spreading through the air. This is not the first government or central bank who changed their minds over the crypto currency through the past. We have seen same thing happening with the Nigeria, India, Brazil, Bangladesh and more other countries to name. China on the other hand holds most of the mining power. May be after the recent blackout China Bank realised the power that they are holding in their hands. They know very well now, they can stop the whole bitcoin economy or they could move it away with their mining operations. The income mostly getting driven into the China, thus more taxes and thus more power to banks. This could be the thought process behind all this. It's good that they are changing their minds, it will help flourish the crypto market more effectively.

Personally I think this has more to do with bitcoin being a threat to the hegemony to the US dollar than anything else, China understands very well that if they want to eventually take the position of the US then they need to displace the US dollar, but this is something difficult to do, they are thinking that even if bitcoin is not going to be enough to do the job it could be a useful tool against it.

This is why we have seen articles on the US trying to bring this issue to Biden so the US gets onboard the bitcoin ship as well, otherwise China will have a strategic advantage over them on a technology that will prove itself to be critical in the future.

[iv4n]

...

Personally I think this has more to do with bitcoin being a threat to the hegemony to the US dollar than anything else, China understands very well that if they want to eventually take the position of the US then they need to displace the US dollar, but this is something difficult to do, they are thinking that even if bitcoin is not going to be enough to do the job it could be a useful tool against it.

This is why we have seen articles on the US trying to bring this issue to Biden so the US gets onboard the bitcoin ship as well, otherwise China will have a strategic advantage over them on a technology that will prove itself to be critical in the future.

Interesting point of view! This reminded me of "Where two are fighting, the third win", and I think that third is Bitcoin!
Every government has some hidden agenda. After all, we talk about governments, and frankly, I don't trust governments! What I think it's important is that people can hear and learn about Bitcoin and Blockchain freely! I guess with this law now, people from China will be able to exactly that! In the long run, more benefits are going to crypto! So while these big guys are fighting their wars, the crypto community will grow and grow... For me the outcome is inevitable!

[SaShiRaJaVu]

This is why we have seen articles on the US trying to bring this issue to Biden so the US gets onboard the bitcoin ship as well, otherwise China will have a strategic advantage over them on a technology that will prove itself to be critical in the future.

The best these governments can do is to leave the cryptocurrency space alone, if they are adamant that they want to monitor the market all they need to do is to monitor the scams and make sure that anyone collecting money should be registered as a company in a legal way so that they will not run away with the money and will do the assigned work and be transparent and will return the money collected if they fail as a project.

If they can do that then the market will thrive on its own and create more business opportunities. I do not care about what China or any other country say about the cryptocurrency market, all they can do if they really want innovation is to leave the market alone.

[adzino]

Lol funny how they can't even decide anything even after years. Do they even know what crypto currencies are? I thought they were cracking down everything related to crypto currencies. Banning exchanges, destroying mining farms and making crypto currencies illegal. And then they went on making their own blockchain powered centralized currency. What happened to that? Funny to see them now with a different tone. I wonder if all these were just staged to see how the market reacts.

[cmg777]

The Chinese just want the Digital Yuan to overshadow BTC as a currency or asset for trade.

[Kasabus]

In an interesting turn of events, China's tone on BTC has "softened". Who was expecting this change in tone? Not me. Not after all the crack downs on exchanges or ICO bans and the works they are doing with their CBDC.

People's Bank of China deputy governor also said they will be looking to craft regulations to prevent speculations of BTC investments. They will most likely convene meetings with traditional companies that are interested.

It's a very fairy tale story type of deal what China is doing with crypto. I hate china as much as the next guy for all the things they are doing and how they are managing their nation, but when it comes to crypto they have turned 180 degrees so that is a good thing for us. This doesn't make them a good nation, but at the very least it would make them a crypto friendly one and we need something like that from every nation.

I remember clearly when there was talks about how they were planning on banning bitcoin all together, and loving some other coins like EOS which is down from where it was, and they were even against miners for a while. Looking at how they are right now, I can see that they are doing very well and they will probably keep doing very well for a long time as well. Crypto should be supported in every nation, there is no exceptions.

It's hard to tell the real intention of China about this sudden change about their view on bitcoin. Maybe they have come to realized that they cannot shut down bitcoin and their digital Yuan cannot replace bitcoin's popularity.

Although this news is quite hard to believe thinking how China had disliked bitcoin before, this brings positive impact to crypto market which will open more chances for bitcoin to be accepted as a payment in most countries and even as a a good alternative asset or investment.