Cryptocurrency in China

Reports related to “Cryptocurrency is the best performing asset in 2020” have been spread in many state-owned media in China.

source:shuttershock

China has considered Bitcoin and other cryptocurrency transactions to be illegal activities for a long time. Since 2017, the Chinese government banned people from trading cryptocurrency through trade centres or any websites, but the restrictions has not reduced the enthusiasm of cryptocurrency among the Chinese people, but further develop the over-the-counter business, i.e customers trade cryptocurrency without getting through any third parties.

However, last year, Chinese President Xi Jinping emphasised “Taking the blockchain as an important breakthrough for independent innovation of core technologies and accelerating the development of blockchain technology and industrial innovation.” during the 18th collective session of the Political Bureau of the CPC Central Committee on October 24. But still, the Chinese authorities continue to exercise comprehensive and strict control over the country’s cryptocurrency trading activities, and even request local governments to abolish the cryptocurrency mining industry.

So, it is no doubt that China links with “anti-cryptocurrency”. But we can discover that the Chinese government has been optimistic about the blockchain technology recently.

Financial channel of China Central Television (CCTV), conducted a series of discussions on cryptocurrency. Apart from claiming cryptocurrency was the best performing asset in 2020, it also discussed Ethereum (ETH) and Decentralised Finance (DeFi).

Reporters attributed the outstanding performance of the cryptocurrency market this year to the increased participation of DeFi and the inflationary concerns caused by US dollars:

“The main reason for the rise of cryptocurrency is the acceptance of decentralized finance (DeFi), is constantly increasing, and cryptocurrency is an important tool in this regard. Besides, due to the epidemic, The introduction of huge stimulus measures may stimulate inflation and weaken the value of the U.S. dollar. As a result, supporters believe that major cryptocurrencies such as Bitcoin can be an alternative for value preservation.”

Even though the reporter stated that there is still a high degree of uncertainty in cryptocurrency, overall, the conversation is not obviously hostile to the cryptocurrency industry.

On the other hand, Xinhuanet,China’s state-run News Agency, also cited a Bloomberg report on September 24, titled “Cryptocurrency Is Beating Gold to Become the No.1 Asset in 2020”, which is same as the CCTV report.

Dovey Wan, the co-founder of Primitive Ventures, a blockchain investment agency, said that this kind of interesting publicity spread in major media and appeared in all newspapers, online media and TV. The content of the promotion is the same, that is, “ The performance of digital assets outperforms all other investment materials”. Binance CEO Changpeng Zhao (CZ) also responded on Twitter “Most people on Twitter probably don’t understand how big this is. It is big.”.

As China is the world’s largest producer of bitcoin, around 70% of the world’s bitcoins are mined by China, 80% of blockchain technology patent in China, the participation of China investors in the cryptocurrency industry can drive the development, which is significant to the crypto field.

(with reference to abmedia.io)

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