Why is China not supporting bitcoin?

[Oshosondy]

I just make a little research about this but I saw this on Investopedia:

China has a strict stance on cryptocurrencies because its government believes they will destabilize its currency at a time when it is working on expanding its economy. It has weighed creating its own CBDC and is participating in cryptocurrency regulatory development efforts.

I know China accept bitcoin as a property but their government is very hostile to it and they prefer not to have bitcoin reserve.

I think some countries are thinking like this but bitcoin is more of a friend that being an enemy. Or only what China wish to achieve is the Yuan to dominate United States dollar and other strong currencies in the world.

If they want dedollarization, bitcoin is there for them which is a deflationary asset but the country is not buying bitcoin.

China has that hidden agenda?

[Faisal2202]

I think some countries are thinking like this but bitcoin is more of a friend that being an enemy. Or only what China wish to achieve is the Yuan to dominate United States dollar and other strong currencies in the world.

If they want dedollarization, bitcoin is there for them which is a deflationary asset but the country is not buying bitcoin.

China has that hidden agenda?

Everyone has some agenda, without agenda life is boring.

China is trying hard which is necassary for any country to make more and more efforts, it is the dedication and the nature of those people (Chinese) to make more effort and not stop chasing their dreams and the citizens their are very hard working.

Anyway, China is like an alternative, if world will be dominated by single power, the world will become a monopoly for them they control most of it, I guess they are already mis using that but I won't say China want dedolarization because they love it, it is because they don't care their actions are causing dedolarization, they want dominant too.

So these two powers want to dominate in their regions, but USA has bigger dreams, they want to shine in China's region and by China's region I don't mean China owns it or have rights on it, haha. Anyway I like the drama and competition, it is good for business (sometime not)

[ginsan]

I just make a little research about this but I saw this on Investopedia:

China has a strict stance on cryptocurrencies because its government believes they will destabilize its currency at a time when it is working on expanding its economy. It has weighed creating its own CBDC and is participating in cryptocurrency regulatory development efforts.

I know China accept bitcoin as a property but their government is very hostile to it and they prefer not to have bitcoin reserve.

I think some countries are thinking like this but bitcoin is more of a friend that being an enemy. Or only what China wish to achieve is the Yuan to dominate United States dollar and other strong currencies in the world.

If they want dedollarization, bitcoin is there for them which is a deflationary asset but the country is not buying bitcoin.

China has that hidden agenda?

I think China doesn't want its people's money going into crypto, because if Bitcoin is legalized, altcoins will automatically become an alternative, and China doesn't want that. It's better to use it for economic growth or investment in Chinese companies. They aim to accelerate domestic money circulation rather than competing with global rivals like in the Bitcoin or crypto markets. I think this makes much more sense for China's current situation, and they still believe that the extent of manipulation that might be carried out by their predecessors in Bitcoin is because they are not from their nation. And perhaps they still believe the Bitcoin conspiracy is a CIA creation or another conspiracy deliberately created to eat up world capital.

[mindrust]

China probably thinks the US is behind bitcoin and if they are right about that it makes bitcoin a hostile asset to their economy. I can’t come up with any other explanation. I know it is kind of stupid to think that way since btc is all open source but China is a closed economy. Foreigners are not really welcome there. You probably know Facebook, Google, Twitter etc all the social media originated from the US are banned in China. They use their own version of Facebook etc there. They probably follow the same idea with btc. “If it is made in US, we cannot allow it to run in Chiiiiinaaaa” Weird obsession if you ask me. One would even call it paranoid. Let them stay poor I guess.

[passwordnow]

They have been on and off with Bitcoin and that's okay. The most manufacturers[1] of ASIC Miners even come from China and that's why they've got their other foot on the waters of it and even they'd be against to the actual holding of it, they've got the shovels to mine it. So, they are in it but they don't want to publicly mention it anymore because they're riding in many markets that could also be a problem to them if most people knew about it.

[1] https://www.asicminervalue.com/manufacturers

[alani123]

If you go to https://miningpoolstats.stream/bitcoin you'll see that among the top 11 mining pools, 7 are controlled by distinctly Chinese interests.
Clearly while China doesn't have a very friendly policy on bitcoin, it doesn't care much about those using the industry to bring in profits.

AntMiner is clearly the biggest mining machine producing company and they're based completely out of China. Then there's also other companies like bitfufu who's a cloud mining company and their HQ are in Shanghai even though they don't host miners in China. Now they have facilities in Ethiopia, Kazakhstan and more countries while still having a financial HQ in China but no domestic mining.

Also China continues to experiment with blockchain and they're implementing many solutions that you can look at:
https://en.wikipedia.org/wiki/Blockchain-based_Service_Network

China doesn't need BTC and speculation to utilize blockchain tech and they know that very well.

[Cookdata]

I know China accept bitcoin as a property but their government is very hostile to it and they prefer not to have bitcoin reserve.

I think some countries are thinking like this but bitcoin is more of a friend that being an enemy. Or only what China wish to achieve is the Yuan to dominate United States dollar and other strong currencies in the world.

If they want dedollarization, bitcoin is there for them which is a deflationary asset but the country is not buying bitcoin.

China has that hidden agenda?

The ban of Bitcoin in China was issued by Xi Jiping and as long as he remain the president of China, not sure if we are going to see any reverse ban. Not sure the kind of democracy China is practicing, but in US they never liked Bitcoin but Donald Trump made that as an advantage to push it even if it was never fully allowed as legal tender. If it's possible to have a change in the government in China, this would have been review and lift by another person since.

I don't have real data to back up my claim but I remember just before the ban of Bitcoin in China, we had more miners from China than we had on the other part of the world because they are very active, they have the resources to cheap electricity, they clearly dominated the Bitcoin, the crash was heavy and did alot of damage to the Bitcoin market but as they vanish from the market, so is their dominance reduced drastically that I don't think any news negative from China will shake the market by an inch.

[coolcoinz]

I think China doesn't want its people's money going into crypto, because if Bitcoin is legalized, altcoins will automatically become an alternative, and China doesn't want that. It's better to use it for economic growth or investment in Chinese companies. They aim to accelerate domestic money circulation rather than competing with global rivals like in the Bitcoin or crypto markets. I think this makes much more sense for China's current situation, and they still believe that the extent of manipulation that might be carried out by their predecessors in Bitcoin is because they are not from their nation. And perhaps they still believe the Bitcoin conspiracy is a CIA creation or another conspiracy deliberately created to eat up world capital.

They were against bitcoin in 2014 when the altcoin market barely existed. There was no ETH and its whole ecosystem and I doubt that China considered coins like LTC a threat.

I don't know if you remember what the first "official" reasons for banning bitcoin were. One was that people were using it to move money out of China. China restricts the flow of money and you can't easily transfer wealth there. It's easy to exchange an apartment in China for something they produce locally, like a car, but very hard to buy property in other parts of the world, like the EU because the CCP is afraid of outflows of capital. They have a lot of cheap goods and all they need is for people to keep buying it indefinitely. If that chain gets broken and instead of a house in China, or a locally made car people buy German cars and houses in Spain, China loses.

The other less important reason was that Chinese exchanges were very shady, faking volumes and not doing KYC, so they got rid of them and later allowed them to operate in Hong Kong as long as they play ball, so probably full surveillance of their clients and monthly reports sent to the Party

[Yamifoud]

Their point of view towards bitcoin is good for their government but not for their people. They don’t support bitcoin, because they have their digital yuan, and because US is behind bitcoin, well that is a very selfish concept that China is known of. It’s like they want to take full control over their people’s decision, and because bitcoin continue to attracts China and it’s community, the government becomes more hostile to it, not because they want to get rid of bitcoin’s illicit financial activities and security and control issues, but mainly because they want to promote their digital yuan wherein bitcoin is a direct competition on it.

[Mrbluntzy]

There was an article I read, it say china is still in possession of about 195,000 Bitcoin that they seized from a plustoken ponzi scheme around 2020. The Chinese government might not be buying Bitcoin for federal reserve but I suspect that they have some Bitcoin holding, perhaps they have never officially disclose their Bitcoin holding, so we can not be sure of what is going on internally.

[rodskee]

I think some countries are thinking like this but bitcoin is more of a friend that being an enemy. Or only what China wish to achieve is the Yuan to dominate United States dollar and other strong currencies in the world.

If they want dedollarization, bitcoin is there for them which is a deflationary asset but the country is not buying bitcoin.

China has that hidden agenda?

Everyone has some agenda, without agenda life is boring.

agendas exist not because for fun but because agendas are what supplies people’s greeds if they have such greed to be the biggest or best currency ever they wouldn’t even attempt to support bitcoin and let it grow under their own authority

[Alpha Marine]

There is a reason you can hold bitcoin in China, but you can't trade it. You cant use it to pay for anything either, nor can you use a foreign exchange. China needs its currency to be strong and continue to grow so it can match the dollar, and allowing its citizens to use bitcoin and other crypto for payment will take demand away from the Yuan. This is also why using foreign exchanges is illegal in China.. They see it as a competition for their currency. They have a population of over a billion, and they love technology, so if given the free will, a whole lot of them will use bitcoin and in a country where there are about 255 million people between the ages of 15-44 (the majority of people who use bitcoin and crypto globally fall between this age group), that might have an impact on the demand of the local currency.

For people talking about how a lot of mining is going on in China and using that to say China welcomes bitcoin, it's not exactly the case. The cost of electricity is relatively cheaper in China. Actually, the cost of mining Bitcoin in China is relatively cheaper. So miners didn't go because it was a bitcoin friendly country, it was just better for business.

[Distinctin]

The government of China is widely authoritative so bitcoin having a decentralized nature will never expect to get a sympathy from the Chinese communist party. China will never support bitcoin, most especially that they have their own digital yuan, and that people should only stick to their yuan, not with bitcoin or any other decentralized digital currency.

And to think that China is a big competitor of US, and Trump is backing up bitcoin, the more they won’t be open for bitcoin, even if it means contradicting the people’s interest towards bitcoin and its highly investment potentials.

[tabas]

There was an article I read, it say china is still in possession of about 195,000 Bitcoin that they seized from a plustoken ponzi scheme around 2020. The Chinese government might not be buying Bitcoin for federal reserve but I suspect that they have some Bitcoin holding, perhaps they have never officially disclose their Bitcoin holding, so we can not be sure of what is going on internally.

They wouldn't disclose how much they have. And that's why news like the decision of banning it on their country is what they have to do to hide all of their potential accumulations. I think that aside from that seizure of plustoken bitcoins, they've got a continuous accumulation because if it's money, they're never late too it. And in fact, they're investing heavily to something like this when they see the true potential of it. They won't just let the US do all of the dictation that they can do in the crypto market and that's why if there are bad news from them, the market moves as well.

[Zaguru12]

I don't have real data to back up my claim but I remember just before the ban of Bitcoin in China, we had more miners from China than we had on the other part of the world because they are very active, they have the resources to cheap electricity, they clearly dominated the Bitcoin, the crash was heavy and did alot of damage to the Bitcoin market but as they vanish from the market, so is their dominance reduced drastically that I don't think any news negative from China will shake the market by an inch.

Your data are real as everyone can actually verify this information by Simply using the internet, prior to the ban that happened in 2021, China has been housing almost 70% of the total mining rigs of bitcoin, we all know how it was even causing seen then that Satoshi is Chinese and that’s why, I think a year after the Covid crisis the ban was actually implemented and this was when not only miners but even bitcoin or cryptocurrency exchanges were evacuating China, if you can recall exchanges like Huobi were top exchanges before but after this ban they had to close down tenth business.

I think as long as the government of the day isn’t yet happy about bitcoin it will be really hard to actually see them totally uplifting this ban, so I agree when Everyone say it will be possible only if XI is no longer there as the president again and a friendly person comes around

[Son Of Blockchain (SOB)]

China probably thinks the US is behind bitcoin and if they are right about that it makes bitcoin a hostile asset to their economy. I can’t come up with any other explanation. I know it is kind of stupid to think that way since btc is all open source but China is a closed economy. Foreigners are not really welcome there. You probably know Facebook, Google, Twitter etc all the social media originated from the US are banned in China. They use their own version of Facebook etc there. They probably follow the same idea with btc. “If it is made in US, we cannot allow it to run in Chiiiiinaaaa” Weird obsession if you ask me. One would even call it paranoid. Let them stay poor I guess.

What I feel is that the Chinese government is preventing it's citizens from using it to indulge in illegal activities, let's no forget that activities like gambling is illegal in the nation so you don't expect the government to patronize Bitcoin and other coins then cryptocasinos relating with gambling remains banned it would be very biaz, so they had no choice than to place a ban on it too.
 Also, maybe they considered the cost of mining and how  it consumes lots of energy. The fact that they're competing economically with the U.S and feel that Bitcoin was masterminded by the U.S government could also be a reason too. But I believe that maybe with time they'll realise that it has the potential to aid more economic growth and retrace their judgement about it.

[abhiseshakana]

I just make a little research about this but I saw this on Investopedia:

China has a strict stance on cryptocurrencies because its government believes they will destabilize its currency at a time when it is working on expanding its economy. It has weighed creating its own CBDC and is participating in cryptocurrency regulatory development efforts.

I know China accept bitcoin as a property but their government is very hostile to it and they prefer not to have bitcoin reserve.

I think some countries are thinking like this but bitcoin is more of a friend that being an enemy. Or only what China wish to achieve is the Yuan to dominate United States dollar and other strong currencies in the world.

If they want dedollarization, bitcoin is there for them which is a deflationary asset but the country is not buying bitcoin.

China has that hidden agenda?

I believe that China's Bitcoin ban is not anti-crypto, but rather because China wants to monopolize the future of global digital money. The ban is a strategic component of China's broader framework to:

Maintain domestic monetary control, as Bitcoin threatens capital flows and foreign exchange reserves.

Strengthen the launch and adoption of e-CNY.

Support the dedollarization agenda (reducing USD dominance).

Regulate payment systems and financial flows within the BRI network and international cooperation, which China dominates.

Develop a narrative of real asset-based money (gold, commodities) and prevent uncontrolled alternative systems.

Thus, China's Bitcoin ban can be seen as a capital and monetary safeguard measure that allows China to implement its vision for a new, more multipolar monetary order, less reliant on Western-controlled financial systems or free money that cannot be controlled by the state.

China's view of Bitcoin is as follows:
1. A Western Trojan Horse, the mysterious identity of Satoshi is considered a Western-backed experimental project to test global financial decentralization after 2008. Satoshi Nakamoto (mysterious identity) is considered by some intelligence analysts to be an "experimental project" possibly supported by Western intelligence elements (NSA/CIA) to test global financial decentralization after the 2008 crisis. Although it spreads without borders, the infrastructure is Western-based.

2. The ban is a technological reservation; China studied the system born in the West, then blocked access to copying, modifying, and replacing it with a system that would support yuan dominance. From 2013–2016, China was the world's largest Bitcoin mining center (mature/mastered the technology, logistics, and mining infrastructure). Once the network was mature enough and the price rose, China shut it down, having learned enough of its secrets and prepared a closed version under its central bank.

3. Just like the USD, Bitcoin is a threat
For China, both the USD and Bitcoin are two sides of the same coin, both posing a threat to China's monetary sovereignty. The USD is a symbol of old hegemony (US control through SWIFT, the IMF, and global debt). Bitcoin is a symbol of new hegemony (stateless decentralization, which can replace the role of any central bank). Therefore, China is adopting a strategy to cripple USD dominance through dedollarization (BRICS, BRI, RMB trading). Neutralize the Bitcoin threat through domestic bans and control of blockchain infrastructure, then build its own e-CNY system and cross-border CBDC network (mBridge, CIPS, BRICS Pay). Ultimately, China will emerge as the creator of a third path: a global digital currency system that remains based on real assets (gold, commodities), but under state control.

4. Bitcoin is a disruption to the system under construction.
The BRI is not just an infrastructure project, but a global monetary roadmap. The choice of the BRI route is undoubtedly based on the country's vast gold reserves and strategic commodities. The construction of ports, railways, and logistics lines is a strategy to lock down trade routes for commodities and real assets. When the old global financial system collapses (US debt crisis, fiat inflation), China can connect all BRI nodes through a digital yuan system "backed by real assets." China does not want its citizens or partners to store value in free digital tokens.

5. China prefers physical gold to digital gold
China is aware that a global blockchain-based monetary system will end in a digital liquidity war (which can be won by those who control hash power or technology). In contrast, gold is unhackable, unsanctioned, and its value is universally accepted. China and Russia's ongoing gold purchasing policy since 2015 certainly takes geoeconomic considerations into account, especially if it relinks gold to the monetary system as a basis. On China's agenda, Bitcoin is a digital model that will be replaced by a real asset-based CBDC, which can be morally justified, economically audited, and politically controlled. China is trying to eliminate Bitcoin as an option when the world shifts to digital real assets. China is aiming for a tokenized gold or commodity-based RMB.


https://updatepool.com/china-crypto-regulation-2025-is-cryptocurrency-legal
https://www.theguardian.com/world/2021/sep/24/china-declares-transactions-cryptocurrencies-illegal
https://www.indiatoday.in/technology/news/story/china-says-all-bitcoin-or-crypto-transactions-are-illegal-may-ban-crypto-currencies-1856802-2021-09-24
https://coinedition.com/china-bans-holding-bitcoin-and-altcoins-price-drops

[X-ray]

China just want their currency to dominate, they don't really want innovation in that sector nor bitcoin but their own digital money.

It's why the west is embracing crypto because west is more open to innovation and willing to take risks. In short china wants full domination while the west embrace innovation.

This is why china will be left in crypto sector by decades, they'd realize they are late when every countries already miles ahead.

[MusaMohamed]

China just want their currency to dominate, they don't really want innovation in that sector nor bitcoin but their own digital money.

It's why the west is embracing crypto because west is more open to innovation and willing to take risks. In short china wants full domination while the west embrace innovation.

This is why china will be left in crypto sector by decades, they'd realize they are late when every countries already miles ahead.

Wanting their national fiat currency to dominate the global financial flow is a hardly achievable target and I believe that with a considerable decline of the China economy since 2016, there is very small chance that their fiat currency can de-dollarize the US dollar successfully. Recent months, there are more countries have been trying to keep distance with BRICs and the ambitious aim of China to de-dollarize.

China government can publicly show their policies against Bitcoin but behind the scene, who knows whether the government accumulated bitcoins to enrich their leaders' wealth like Xi JinPing wealth.

[tottong]

I think some countries are thinking like this but bitcoin is more of a friend that being an enemy. Or only what China wish to achieve is the Yuan to dominate United States dollar and other strong currencies in the world.

If they want dedollarization, bitcoin is there for them which is a deflationary asset but the country is not buying bitcoin.

China is indeed a difficult country to predict, and they are the only country that dares to oppose US policy in global trade relations.
No one knows for sure why China doesn't accept Bitcoin, or even treats Bitcoin as an enemy, but it's different because they've started buying gold in larger quantities.
Whatever agenda they're developing is nothing more than an attempt to dominate and strengthen their country, so they have a different view, even though we see Bitcoin as not as bad as their general view.

The talk of dedollarization might be true, as they are currently on the BRICS agenda, thus strengthening the non-aligned group.
But is this the goal of their overall agenda? We never know, because, as I mentioned earlier, it's difficult to predict China so far.