China against the Blockchain: the conflict continues
Today it became known about new events that directly show China’s attitude to Blockchain and everything related to new generation protocols. Of course, we are talking about the latest news about bans on supporting digital projects and power outages in the Middle Kingdom. Further – an assessment of the current position of China in relation to the digital industry and the Blockchain. So, without further ado, let’s get started.
What is the state doing?
Let’s start with the most radical government initiatives. Today, the National Bank of China, namely its three associations, issued a notice that prohibits all local companies from supporting cryptocurrencies. Even interaction with projects that are indirectly involved in the use, promotion or release of digital assets is prohibited. The document was signed by representatives of the China Banking Association. The initiative was also supported by specialists from the Internet Finance Association and the Payment and Clearing Association.
In addition to the adoption of the relevant law, representatives of government agencies noted the insecurity of digital assets. In their opinion, investing in cryptocurrency is dangerous and potentially unprofitable. As they are not protected by law and do not have any guarantees. But this is not your usual concern for your citizens. This is a tough decree. According to which the cryptocurrency is prohibited from being used on the market.
Based on the opinion of representatives of state systems, such tough measures will reduce the likelihood of financial crime. According to experts, a complete ban will make any interaction with a digital asset impossible. Including criminal fraud. The corresponding advertising of new generation projects is also prohibited. In general, any mention of Blockchain, a call for cooperation or support for a project is now illegal. And you know what’s the worst thing? It is possible that this is just the beginning.
How China will proceed in the future
China is one of the leading players not only in the global economy, but also in the blockchain industry. Recent events also speak of this. In recent days, Sichuan has been experiencing some electricity problems. The region ran out of coal, and the amount of precipitation did not meet even the minimum forecasts. The electricity is gone. As a result, the computational scale of the Bitcoin network, that is, the overall hash rate of the Blockchain, fell by 20%. These are colossal indicators that demonstrate the level of dependence of the first digital currency on the Middle Kingdom. And, obviously, the Chinese government understands how important their decisions are for the entire digital economy.
Therefore, they can safely take any measures, because the significance of their word is too great. Thus, China will certainly not change its course and will continue to oppress the new generation of currencies. This is a very likely outcome of the current state of affairs. After all, you must agree that the prospect of a complete change in one’s own policy sounds strange and simply unrealistic. It is much easier to believe in the future pressure on Blockchain and digital assets.
Yes, indeed, these are difficult times in China. The government is doing an extremely interesting way by completely banning the mention of currencies and the use of digital assets. But at the same time, he does not refuse to develop his own digital solution. Time will tell what will come of such an ambiguous policy. So far, we can only follow the news of the cryptoindustry. Stay tuned to keep abreast of all the events from the world of Blockchain and high technologies. We publish only high-quality, interesting material. Thanks for attention. Good luck!