Former President Introduces Reason Behind Crypto Crackdown

[Leviathan.007]

The former president of the People's Bank of China shared his view on CBDCs and their part in the modern economy, additionally commenting on the real reason behind the crypto crackdown in the country.
He believes that while other countries use different ways of implementing digital currencies in their economic systems, China will find and use the best possible way.

As Zhou Xiaochuan stated, the most basic function of currency is as payment; otherwise, it is inherently useless in the traditional economic system. While the currency may have a storage function, it must be useful for payments.
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.
Referring to the most recent actions coming from the Chinese government toward traditional cryptocurrencies and mining, Zhou said that it is the "survival of the fittest" since the decentralized blockchain-based digital currency is not the most convenient payment method for traditional economies.
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.


Source: https://u.today/chinas-central-banks-former-president-introduces-reason-behind-countrys-crypto-crackdown

[STT]

If China had invented a better product they wouldn't require to ban the opposition.  The actions of the communist military backed party is not towards free enterprise and the discovery of the best product for the people and country, it will be for the result of favoring the largest entities in the country who in turn support the party.
   It is far easier to operate a centralized system over a self confirming decentralized system, we have known this some time and if its not decentralized its not crypto.  A really simple rule to remember, China will operate a digital currency system but I already have that in 99% of FIAT being digital clearance.

[Darker45]

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.

However, I think Zhou did not mention the one biggest reason why Bitcoin, or other independent cryptocurrencies for that matter, will never be adopted as a currency of his country. The main reason, which should sufficiently stand alone, is actually that China will never give up control over money. Using Bitcoin or other independent cryptocurrencies means losing that control.

[mk4]

Banning something because apparently they think it's going to outperform the CBDC. Sounds legit! Apparently Bitcoin and cryptocurrencies are so substandard that they need to ban it like every month.

[Wexnident]

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.

[davis196]

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.

However, I think Zhou did not mention the one biggest reason why Bitcoin, or other independent cryptocurrencies for that matter, will never be adopted as a currency of his country. The main reason, which should sufficiently stand alone, is actually that China will never give up control over money. Using Bitcoin or other independent cryptocurrencies means losing that control.

I also agree with this,but is Bitcoin an actual currency?
If you ask me,Bitcoin is more like a financial asset,whose main goal is the store of value.Bitcoin isn't convenient as a medium of exchange because of the volatile price and the slower and more expensive transactions,which occur every time the blockchain gets stuck with multiple transactions.
There's also a thing called the "Gresham's law" in which bad money (fiat) drives good money (Bitcoin) out of circulation,so the people prefer to use bad money (fiat) in their daily life,while keeping the good money(Bitcoin) as a store of value.
CBDC is going to be another form of fiat money/"bad money".

[Charles-Tim]

He believes that while other countries use different ways of implementing digital currencies in their economic systems, China will find and use the best possible way.

Most countries in the world accept decentralized currencies but China only banned such currencies and created centralized digital Yuan.

As Zhou Xiaochuan stated, the most basic function of currency is as payment; otherwise, it is inherently useless in the traditional economic system. While the currency may have a storage function, it must be useful for payments.

Then why ban decentralized currencies in China as they have this function?

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.

Then why ban decentralized currencies as they have these characteristics?

Referring to the most recent actions coming from the Chinese government toward traditional cryptocurrencies and mining, Zhou said that it is the "survival of the fittest" since the decentralized blockchain-based digital currency is not the most convenient payment method for traditional economies.

This is definitely false information Chinese governments are using to mislead their citizens not to have freedom.

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
.

Definitely a lie.

Former President Introduces Reason Behind Crypto Crackdown

This is not about crypto crackdown but a way to promote their centralized coin, digital Yuan.

[The Sceptical Chymist]

<snip>Zhou said that it is the "survival of the fittest" since the decentralized blockchain-based digital currency is not the most convenient payment method for traditional economies.

This is definitely false information Chinese governments are using to mislead their citizens not to have freedom.

<snip> modern cryptocurrencies have with the scaling that includes fees, network congestion and the speed of transactions
.

Definitely a lie.

Ah, you beat me to it--I was going to say exactly what you said after reading the article.  Zhou isn't concerned with any functional problems of bitcoin or its utility as a currency.  Those statements are total BS, which is exactly what I'd expect from any politician in any country.  It really is amazing how consistent they are across the world with their double-speak, obfuscation, and straight-up lying.  You'd think cultural differences would have an effect on that, but they don't--people who achieve high political rank get there by the same means and have sociopathic personality traits that transcend borders and culture.

The ban on crypto is all about China's control over its citizens' freedom to do what they want with their money, and it's the same reason any government regulates crypto to the point of uselessness.  I'd like to think something like this wouldn't happen in my country, but I'm not naive enough to think that it couldn't.

[cabron]

Cryptocurrency will outperform their CBDC of course. Nothing like a currency that is not confiscatable by authorities. While they ban Bitcoin and all other crypto transactions, the rest of the world is adopting cryptocurrencies. Once they see it's not going to be to their advantage, they may change their stance about crypto and will welcome Bitcoin.

I heard they are going to make athletes use the CBDC this Beijing Olympics 2022 which is why some athletes are boycotting this Beijing Olympics 2022.

[Gyfts]

The real reason - https://www.npr.org/2021/10/18/1046945534/chinas-economic-growth-weakens-amid-construction-slowdown

China's economy is becoming unstable and they're having trouble growing. If China's economy falls, that's going to send the global economy into the gutter for some period, who knows how long. This is as most economies are already trying to recover from Covid. Just a desperate and failing attempt at trying to regain control of the inevitable downfall of the Chinese economy.

[Kakmakr]

Well, first of all... this is coming from a former president ...so he is not in the picture anymore... he is speculating just like any other normal citizen now. 

Secondly... What did they test, when they said... Bitcoin has scaling problems and high fees and transaction congestion and speed problems? Did they even consider Bitcoin with the Lightning Network... or did they just look at the original Bitcoin (BTC)?

The Lightning Network solved most of those problems ....and this is a much better option to use, when you use Bitcoin as a currency. 

[Hydrogen]

Referring to the most recent actions coming from the Chinese government toward traditional cryptocurrencies and mining, Zhou said that it is the "survival of the fittest" since the decentralized blockchain-based digital currency is not the most convenient payment method for traditional economies.
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.

The former President of china's central bank, sounds much more credible than Jamie Dimon. Have to give him that.   

But isn't it interesting how his words return us to the big block debate? One might wonder if origins of the big block movement had connections to china. I think so far china is the only central bank to echo big block demographic ideology. Nigeria, venezuela and other nations have publicized other reasons for opposition to cryptocurrency adoption. There could be an interesting thread of deduction determining affiliation present.

The timeline for CBDCs could also be an interesting point of deduction. Many might agree central banks appear to be waiting for something, before unveiling and rolling out CBDC. It appears they could have a blueprint or roadmap in place.

[Gozie51]

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.

[DrBeer]

In a country with a totalitarian regime and new vectors of suppression of "too free" sectors of the economy, digital currency is primarily a control. Total control over the movement of funds, over interactions between various entities both in China and abroad. With cash, these solutions are either not possible or minimal. For example, "marking" tokens is the best tool for identifying chains of actions! And the option with blocking tokens is a fight against "conspirators and Western agents"

[fiulpro]

They didn't have to ban it even though these reasons might be viable for some regions since banning them is straight away not only taking the freedom away from the people but at the same time they are lagging behind, since now bitcoins is the world's 8th most valuable asset people might be more comfortable if they had the chance to hold their investments instead of selling them.
- plus I think most of them will anyways do it illegally and that would be worse for the government, they should have tried to regulate it instead of banning it plus they could have very easily traded them with their new central bank cryptos and it might have helped give both of them a boost. They are just making excuses since they were not able to control bitcoins they decided it was not worth the try.

[RondoAnyar]

very illogical when they claim that they found better but on the other hand they forbid what is not in line with what they are doing. okay talking about china i feel they have quite advanced thinking and are one or two steps away from some other countries.
but it is very unfair when they say that by banning crypto from developing.
Isn't this obvious to make their project run smoothly and the people there can't take any other option than the cdbc they made?

[Fortify]

The former president of the People's Bank of China shared his view on CBDCs and their part in the modern economy, additionally commenting on the real reason behind the crypto crackdown in the country.
He believes that while other countries use different ways of implementing digital currencies in their economic systems, China will find and use the best possible way.

As Zhou Xiaochuan stated, the most basic function of currency is as payment; otherwise, it is inherently useless in the traditional economic system. While the currency may have a storage function, it must be useful for payments.
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.
Referring to the most recent actions coming from the Chinese government toward traditional cryptocurrencies and mining, Zhou said that it is the "survival of the fittest" since the decentralized blockchain-based digital currency is not the most convenient payment method for traditional economies.
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.


Source: https://u.today/chinas-central-banks-former-president-introduces-reason-behind-countrys-crypto-crackdown

None of what you stated are valid reasons to ban cryptocurrency and it just disguises the real underlying reason that no CCP party member will ever be willing to admit. The CCP wants absolute control of everything happening within China, it looks like Xi Jinping did not learn from Mao's mistakes and wants to recreate them on many levels. Instead of opening up to the world and becoming more transparent, the CCP chooses the path fo hostility and making outsiders the imagined threat whenever economic turbulence comes along. Having everyone controlled internally means being able to control money which might otherwise be able to escape the country along with its owner if times got much worse.

[Silberman]

If China had invented a better product they wouldn't require to ban the opposition.  The actions of the communist military backed party is not towards free enterprise and the discovery of the best product for the people and country, it will be for the result of favoring the largest entities in the country who in turn support the party.
   It is far easier to operate a centralized system over a self confirming decentralized system, we have known this some time and if its not decentralized its not crypto.  A really simple rule to remember, China will operate a digital currency system but I already have that in 99% of FIAT being digital clearance.

Your first statement is all what we need to know about this situation, politicians are experts are trying to confuse people and give long explanations that make no sense, if what they are about to implement could be way better than bitcoin then they could just let the market run its course and select the best coin, but they know they cannot compete so they are banning bitcoin and giving some wild explanation about why this is the case.

[beerlover]

Referring to the most recent actions coming from the Chinese government toward traditional cryptocurrencies and mining, Zhou said that it is the "survival of the fittest" since the decentralized blockchain-based digital currency is not the most convenient payment method for traditional economies.
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.

Even if someone from CCP says something right, just ignore them, ignore them at all times. They are bunch of horrible people who have done horrible things, even the ones who didn't do anything horrible still must be involved in those horrible things and fine with it because nobody who is against it would be actually going up in that world.

China just banned crypto because they were afraid people would get more freedom, and they "may" do their own digital money because they want to follow where the money is flowing, so that they could check who is getting richer and come down on them and get their money. That is the real answer, do not read whatever BS that guys said.

[Darker45]

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.