China May Open Up To Regulating Cryptocurrencies Rather Than Banning Them
Xiao Xin of The Global Times, an English language Chinese periodical, just penned an editorial arguing for Bitcoin to be regulated rather than just banning the use and trade of the digital asset. Xin wrote in a column in The Global Times,
“There’s an increasing belief that just saying no to Bitcoin won’t be the eventual solution to the cryptocurrency issue. A more fundamental approach would be to embrace the new technology without putting the country’s financial system at stake.”
This can be seen as a sign that Beijing is getting ready to tighten regulations around the digital currency, as U.S., Japan and Korea have done, rather than ban it altogether.
And that could be further another bullish sign for Bitcoin prices, which have been all over in recent months. Regulating Bitcoin is certainly better than an outright ban.
Xin expresses the belief that banning Bitcoin in China will do nothing to actually stop the use of crypto, but rather just force industry leaders to territories that are more welcoming of Bitcoin and the use and development of other cryptocurrencies and blockchain technology in general.
The leadership of the People’s Bank of China has taken a hard stance against Bitcoin and other cryptocurrencies, warning Chinese citizens of the speculative nature of these new digital assets and arguing that the real world use cases for these coins or tokens are just not there yet.
China’s authoritarian government is uncomfortable with the idea of decentralization and taking the power of financial control away from the central banks. Chinese officials have tried to prevent this exodus from the traditional financial system by blocking the use of cryptocurrency exchanges, and preventing ICOs.
The growing awareness and interest in cryptocurrencies is leading the world toward a situation where it must be recognized and discussed. In another news, Chinese President Xi Jinping recently made positive comments about blockchain technology, saying this week that it has “breakthrough applications” for Chinese industry.
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