China has taken a firm stance against Bitcoin and other cryptocurrencies. Here are some key points:
China was once the Bitcoin trading and mining capital of the world. However, due to concerns about cryptocurrencies devaluing and replacing its fiat currency, China’s government banned non-government-approved cryptocurrencies in September 2021.
The People’s Bank of China declared all transactions of cryptocurrencies as illegal, effectively banning digital tokens such as Bitcoin. They stated that “virtual currency-related business activities are illegal financial activities” and warned that it "seriously endangers the safety of people’s assets".
China’s central bank has said that Bitcoin, Ether, and Tether "are not legal and should not and cannot be used as currency in the market".
Despite the ban on cryptocurrencies, China is developing its own digital currency, the “digital renminbi”, which will be pegged to its currency.
The Chinese government’s actions are seen by some experts as an attempt to incubate its own fledgling e-currency and reboot the international financial system.
These actions reflect China’s efforts to maintain control over its financial system while also adapting to the global shift towards digital currencies. However, the ban on cryptocurrencies has been a point of contention and has significantly impacted the global cryptocurrency market.
sources:
bbc.com
markets.businessinsider.com
dw.com
theguardian.com