The People’s Bank of China Blasts Bitcoin And Crypto. Once Again.
Our take on this news:
Two years ago any news such as this coming out of China would have caused a major sell off in the crypto market. Today it caused hardly a ripple!
What has changed?
It could mean the respect China gets from international community and its place in international trade and investments has somewhat dwindled in the last two years.
It could also mean that people are more accepting of cryptocurrencies in general now than then and have more confidence in its value proposition.
China has every reason to be concerned about cryptocurrencies becoming mainstream and the possibility of Bitcoin becoming the primary reserve currency given that it harbors ambitions to make its own currency the primary reserve currency of the world replacing the USD.
Although Bitcoin becoming the primary reserve currency is only a subject of conjecture now and distant possibility only, the fact remains that the unprecedented ascendancy of Bitcoin in the last few year despite all the bad publicity it has received would certainly be a worrisome factor for a country such as China. Thus it makes every sense for China to keep downplaying cryptocurrencies as much as possible.