Do you think China is playing a double game?

[firesurfer]

China saw Bitcoin futures bullish early on and they sought to accumulate them. Bitcoin is both a currency and the best asset to store. China's economy is growing fast, they are the world's factory. Chinese goods compete directly with anything made around the world. The special thing is that they have counterfeiting technology, abundant and skilled workers.
China is allying with Russia, India, Middle Eastern countries to separate itself from the dollar. This dramatically affects the existence of the US dollar.
I believe that China will emerge as a direct threat to the US economy and this is becoming more certain as we observe their recent moves.

[Hispo]

We should not underestimate the capacity of the Chinese government to push for the adoption of their centralized CBDC, their objective is to further implement those services and wallets to watch over or spy their people.

The Hong Kong situation may be a testing balloon allowed to be launched by the Chinese government so they can test the market and the capabilities of crypto currency as vehicle of value. They know Crypto currency has a lot of future and it would be foolish of them to ignore it, even more if there are Chinese citizens who go again the ban on these assets and still hold and transfer Bitcoin from the shadows.

They do not want crypto to go popular worldwide, but as the highly competitive country they want to continue to be, they cannot afford to stay behind in case this becomes the standard in the future.

[kryptqnick]

I believe that China works based on this sort of careful compartmentalization (which is officially known that "one country, two systems" principle, as Faisal2202 pointed out as well), which means that what happens in HK doesn't affect the rest of the country. There's the majority of the population and territories, and they live under strict authoritarian policies. And then there are special areas that have something happening differently. Hong Kong is special because of transitioning after 99 years of the UK rule. But then there's also Macau, that also used to be a Western colony (but Portuguese, not British) and is kind of a Chinese Las Vegas. So IMO it's all consistent, China just treats these regions as economically different, while trying to make them as close to the rest of China politically. Cryptos are more about economics than politics, so perhaps HK can have better crypto policies, as long that they don't protest against Chinese authorities.

[blckhawk]

You didn't point out their biggest play right now which is strengthening BRICS and having the countries of that organization be convinced that they should abandon the USD as a reserve currency, their current play isn't in crypto right now, and to be honest, I think that they're close to winning in that part.

[stompix]

How much will China profit if they take over everything that is in the US today and is connected to cryptocurrencies?

No bruh, it's a losing battle.
Not China against currency but us trying to teach newbies how ridiculously small  the whole crypto ecosystem is right now and how little there is to gain from it when with talk about a country with a GDP in the trillions.
Everyone says that countries need to attract crypto businesses so
- low or zero taxes for those companies
- zero taxes on profits
So, what are those countries going to benefit from when they will not tax anything, they will end with millions of untaxed citizens' money, huge capital outflow, and all this for what? 10-20 low-paid customer support jobs and a 100 sqm office?

Newbies would really understand to analyze the different implications between personal gain and country-level gains when it comes to crypto, the fact that one person is earning $ doesn't automatically mean for the said country there is also a net gain.

Back to the HK thing, it's just China showing a bit of carrot, wait for the stick, as soon s too much money pours into this and they start losing control they will shut it down in a split second.

[WillyAp]

China plays the game of allow and watch.
They have done so in joint ventures, with Bitcoin trading and mining.

And now they allow Cryptotraders to act from HK's soil. In 10 years or less they'll have enough data to decide what to do.

[Russlenat]

China is definitely playing double game! Not just on crypto but on many other aspects as well. Allowing Hong Kong to host crypto related business is a part of their ambitious gameplan. They are cashing in while US is showing signs of strengthening it's grips over crypto market. It's clear as broad daylight.

But I really don't understand US. They are allowing crypto companies to operate and allowing listing on stock exchanges. At the same time, giving enforcement agencies a freehand to act against them.

No doubt. I mean, there’s nothing new about China, everything they did was part of their hidden agenda. Now, US and other countries have been showing inequality to crypto too, same what China has did in the first place. But I believe when all these countries will hate crypto and lost all the advantages, China will enter again and grab the chances and advantages that crypto can offer. So it will be a loss for those countries who have doubted crypto, and China will be the last country standing ready to own crypto finally.

[boyptc]

AFAIK, HK is still on the phase of making their economy great again and that's why it's either them or Singapore should be the hub in Asia right now for crypto people and companies.

They are removing that restriction and being soft and smooth for these policies because they want to enjoy how it looks like being soft with such policies that will help their economy to keep up.

While they're in that region, they can keep and change policies but in mainland, they're always tough and yes, they're playing the game of what's with the world economy now. Thus, being open with crypto is a good policy that they're trying to test the waters.

[serjent05]

China had been playing double game not only in cryptocurrency but in occupying other territories as well.  They do not honor the United Nations Convention on the Law of the Sea if they are too occupy other territory but apply it against Japan when Japan occupy theirs.  So it is normal to think that China is playing a double game.  They will use any means that will gain them an advantage and disregard it if will put them at a disadvantage.

About the cryptocurrency status in HongKong, as far as I know HongKong has its own government, so I do not think that the Chinese government has something to do with the friendly attitude of Hongkong government to cryptocurrency.

[Cryptomultiplier]

Does that mean China is utilizing this negative situation in the US on crypto to its favour or they are just testing the possibilities in order to regulate it. Do remember this is how China became the 2nd largest economy in just 20 years.

China has tried out several projects inorder to stay ahead of the U.S economy. It is hardly unbelievable that they do not have a game plan. It is quite clear. Bitcoin and cryptocurrencies in total has opened the eyes of many and its possibilities is numerous.
They might have tried crypto in order to understand the Blockchain system better, and also to find loopholes with which it could control, monitor and dominate the crypto space, before America does so and thereby control the world economy once again.
Also, It could be to monitor monetary transactions that could be payment to terrorist or hackers/scammers, mostly now when the world is on a brink of war.

[The Cryptovator]

Honestly, it can be difficult to understand the mindset of the Chinese people. I'm curious why China seems to be lagging behind the US in terms of allowing its citizens to use Bitcoin. It seems that they have realized that they shouldn't fall behind the US because Bitcoin is the most up-to-date and secure technology in the world of cryptocurrency. By banning Bitcoin, they are distancing themselves from those who accept it. Nonetheless, China is likely more aware of their own motives and reasoning for their actions.

[hatshepsut93]

China is giving itself an option to use Bitcoin if it will need to. I think its biggest concern was that Bitcoin will be used for capital flight, which led to ban, but if they only allow Bitcoin in Hong Kong, it's not a problem for them, because Hong Kong is a special economic zone.

And I doubt that China banned Bitcoin because it didn't want it to compete with its digital currency. Digital yuan is there to consolidate government control over fiat payment systems.

[WillyAp]

.... trying to teach newbies how ridiculously small  the whole crypto ecosystem is right now and how little there is to gain from it when with talk about a country with a GDP in the trillions.

Very true the crypto world is way smaller as painted. Too easy to open a wallet.
Than forget about it and make a new one.

[Kasabus]

China is definitely playing double game! Not just on crypto but on many other aspects as well. Allowing Hong Kong to host crypto related business is a part of their ambitious gameplan. They are cashing in while US is showing signs of strengthening it's grips over crypto market. It's clear as broad daylight.

But I really don't understand US. They are allowing crypto companies to operate and allowing listing on stock exchanges. At the same time, giving enforcement agencies a freehand to act against them.

Greed has always been the center of China ever since. So I should never doubt if this is just part of their game plan. Maybe they’re up to something new why they let Hong Kong become crypto friendly when all they want to promote is their own digital currency Yuan. If I’m not mistaken, they plan to get back with crypto again since Yuan never get the success they want. So by deceiving other countries like USA, who is anti crypto yet they allow crypto operations, they will come to believe them that crypto has no place in their country and should be banned permanently.

[dansus021]

They banning the bitcoin so their CBDC can roll out and they dont want to take the risk when the crypto become mainstream till payment there although you was right they push Hongkong which is special region and small country to adopt crypto I think this for experiment if in the Hongkong Succedd they migh lift the ban on the mainland china

[Shan85]

We all know China banned Bitcoin and altcoin trading first. Next they went ahead and banned miners. After that they rolled out their own digital Yuan. Which I am afraid did not succed as expected by CCP. Now suddenly they are allowing HK to go ahead with crypto and become a hub of Bitcoin as well as Altcoin economy. The biggest bank in HK a few days back declared that they will support crypto.
Does that mean China is utilizing this negative situation in the US on crypto to its favour or they are just testing the possibilities in order to regulate it. Do remember this is how China became the 2nd larget economy in just 20 years.

No doubt china is the 2nd largest world economy but the attitude of China towards cryptocurrencies, such as Bitcoin and other altcoins has changed over time. They initially outlawed cryptocurrency mining and trading, but they've since expressed an interest in regulating the industry and using cryptocurrencies to advance their own financial objectives. China may have changed its mind after the scenario in Hong Kong where big institution bank have publicly stated their support for cryptocurrencies. The exact scope of China shifting stance on cryptocurrencies ramifications for the US and its allies though is uncertain and vulnerable to change.

[siniminomorocomunisakito]

We all know China banned Bitcoin and altcoin trading first. Next they went ahead and banned miners. After that they rolled out their own digital Yuan. Which I am afraid did not succed as expected by CCP. Now suddenly they are allowing HK to go ahead with crypto and become a hub of Bitcoin as well as Altcoin economy. The biggest bank in HK a few days back declared that they will support crypto.

I mean what do you guys think is going around with this decision of China. As per my understanding HK has become a shadow control colony of China. Which was not what they had promised to UK. This situation could become a problem for USA and it's allies in the future. Already we can see big companies (banks) in the US are now buying shares of Microstrategy, whereby they are indirectly investing in Bitcoin. As they now realize the potential of Bitcoin.

Does that mean China is utilizing this negative situation in the US on crypto to its favour or they are just testing the possibilities in order to regulate it. Do remember this is how China became the 2nd larget economy in just 20 years.

whether China is deliberately taking advantage of the negative crypto situation in the US or just experimenting to find an optimal regulatory strategy I think is still in the dark. what is certain is that China's economic growth is increasing and there are various factors that contribute to its rapid growth, including policies that encourage investment and trade, a focus on education and innovation, as well as a large workforce. If i see China has taken steps to limit the use of cryptocurrencies within its borders and is actively working towards developing its own digital currency.

[Fiatless]

China is definitely playing double game! Not just on crypto but on many other aspects as well. Allowing Hong Kong to host crypto related business is a part of their ambitious gameplan. They are cashing in while US is showing signs of strengthening it's grips over crypto market. It's clear as broad daylight.

But I really don't understand US. They are allowing crypto companies to operate and allowing listing on stock exchanges. At the same time, giving enforcement agencies a freehand to act against them.

China always plays double standards both in the political and economic ecosystem. They have not openly criticized Putin for invading Ukraine and they are not also supporting Ukraine. They don't want to lose the benefits of their trading with the West so they support Russia secretly, while they are also pretending to promote peace. Hong Kong is its economic lab where China experiments with Western economic and political policies (capitalism). While mainland China is used for the implementation of socialist and authoritarian policies. China doesn't want to lose the benefits many nations are deriving from cryptocurrencies so Hong Kong serves as the avenue to get those benefits.

[touseefahmad1999]

The recent developments in China regarding cryptocurrency regulations have been somewhat contradictory and puzzling. While China has cracked down on cryptocurrency trading and mining in the past, it has also been exploring the potential of blockchain technology and its own digital currency, the digital yuan.

The recent announcement that Hong Kong will be allowed to become a hub for cryptocurrency is indeed interesting, and could potentially be an attempt by China to capitalize on the growing interest in cryptocurrencies and blockchain technology while maintaining some control over the market. It's worth noting that Hong Kong has long been an important financial hub, and it's possible that China sees an opportunity to leverage that position in the growing cryptocurrency market.

At the same time, it's important to remember that China is known for tightly controlling its economy and financial markets, and it's unlikely that it would allow a completely unregulated cryptocurrency market to thrive within its borders. It's possible that China is simply testing the waters and exploring the potential for regulating cryptocurrency within its own borders.

Ultimately, it's hard to say exactly what China's intentions are with regards to cryptocurrency. However, it's clear that cryptocurrencies are becoming increasingly important and influential in the global economy, and China will need to find a way to navigate this emerging market while maintaining its control over its own financial system

[dlightag]

The cryptocurrency market can not be stopped by a particular country, but rather a smart game of playing panic for market to dump, because Bitcoin don't like negativity talk, mostly the countries that has a strong economy in world, by using the power to play a game, while Market get dip and taken the advantage of buying entry point for future holding.