233
Recently China's "move" to ban cryptocurrency in China may have negative consequences in the future. It may effect their economy in a very negative way. China recently announced their own digital "Yuan" but it's not even a cryptocurrency it is only a digital version of their currency. They also didn't just ban crypto. They are reiterating an anti-speculation law from a few years ago.
It seems to me China sees cryptocurrency as a threat instead of a advantage. But because they can't control transactions of cryptocurrencies easy and tax transactions They want to push their digital Yuan because it's more easy for China to manipulate the prices of their currency. China was delusional to believe that their announcement to ban cryptocurrency would effect the prices very negatively. The first few days prices dropped a little, But I believe this only helped make Crypto prices more stable
As China claims, Virtual currencies do not have the same legal status as physical currencies, and may not be circulated in markets as currency. Yet China believe their digital Yuan isn't under those jurisdictions. But that is changing very fast and the future of currency is deeply tied to cryptocurrencies more then China would believe.
China wants too much control. It's too a point it's unrealistic, ridiculous, and will only have negative effects. For example when China made the law couple's could only have 1 child per family. This ridiculous level of control only made things worse. Now they are worried about the decline of their population in the next decade. Now China is potentially at risk of destabilizing their economy in the future.
China declaring all cryptocurrency transactions are illegal is a foolish act. They have no real power over the blockchain and because they don't like the idea of people in their country using crypto instead of Yuan. They can't control cryptocurrency nearly as easily and they can't manipulate the price as easy.
If their decision to ban cryptocurrency does not change, It will effect their economy negative in more ways the one. It's foolish to think one country thinks they have the power to ban crypto currency everyone in the world uses. Their digital "Yuan" that is based on physical Yuan's price will have to change if they want to have a stable economy.
The age physical currencies, metal coins and paper money are coming to end and the age of digital currency is right around the corner. It's not what people are agreeing to and what everyone wants but it's the future and if you don't go by using digital assets you won't be able to buy and sell or be able to do any sort of financial transactions.
Either way, I really hope China changes their decision in the future for the sake of their economy. What do you think? Did China make the right move? Or did China just ensure the downfall of their economy in the future? Feel free to comment below.
