Why China Is Playing a Dangerous Game With Its Future
Is going all-in on fiat currency really a good idea in the modern era?
So, for the umpteenth time in several years, I find myself writing the words “China has banned Bitcoin” yet again.
Each time I usually add something along the lines of “and this time they mean it” just to emphasize the point.
This time, however, they really, truly do.
No, really.
What we know
Last Friday, multiple news outlets started reporting Beijing's announcement and it appeared to be a strong, unambiguous one. A total of ten of the country’s top agencies — including the central bank and financial and foreign exchange regulators — jointly supported the announcement which was worded in a way that we have come to know as typical of the ruling party.
The key objective, so it is claimed, is to root out “illegal” cryptocurrency activity. The way this will be done is to ensure that ALL cryptocurrency transactions are made illegal, apparently with immediate effect.
The rules are also far reaching, even covering any service that facilitates crypto trading outside of China. The PBOC (The People’s Bank of China) made it very clear that cryptocurrencies must…
