The People’s Bank of China is blowing up bitcoin and crypto. Once again.

For a minute it seemed like the FUD was over. The People’s Bank of China is contributing to their country’s crypto crackdown in Financial Literacy Popularization Month. Popular daily newspaper online Reports from Beijing. At one event, Yin Youping, deputy director of the Bureau for the Protection of Consumer Financial Rights of People’s Bank of China, said:

“We remind people once again that virtual currencies like Bitcoin are not legal tender and have no real value.”

Related reading | “The Death of China’s Bitcoin Mining Industry,” 7 Findings from the Article

In addition, Yin Youping classified all cryptocurrency-related investments as pure speculation. He advised the public, “consciously stay away”Of virtual assets in order to avoid unnecessary risks and around “Protect your” bag “. Nothing crazy that comes from a Fiat-powered bureaucrat. Still, an interesting new piece in China’s crypto-conundrum.

Disclaimer: This article used quotes and information translated by Google. Small discrepancies are possible.

What else did the People’s Bank of China say?

Yin Youping not only contributed to China’s crypto penetration, but also responded to the “recovery” of cryptocurrency trading in his country. The People’s Bank of China will:

  • Work overtime to “recognize foreign exchanges and domestic traders.
  • Block “Trading websites, apps and corporate channels. “
  • Intensify”political advertising,“To tell everyone in China the law of the country.
  • Establish “a normalized working mechanism“And continue to take action against cryptocurrency transactions.
  • Maintain “a high pressure situation.

The goal of the People’s Bank of China is pretty clear. And it seems to be working, Youping claimed that “The popularity of trading virtual currencies has dropped significantly.“The deputy director also encouraged the public to report”illegal fundraising offenses“To the competent authorities.

BTC price chart for 08/27/2021 on Bitstamp | Source: BTC / USD on TradingView.com

Does this offer any insight into China’s crypto strategy?

In a thread recapitulating the case, Chinese journalist Colin Wu gave us inside information that was not part of the article. “By blocking exchanges and strengthening political public relations work, China’s popularity has fallen significantly. “

3. By blocking exchanges and strengthening political public relations, China’s popularity has fallen significantly
4. Crack down illegal fundraising activities with virtual currency and blockchain.

– Wu Blockchain (@WuBlockchain) August 27, 2021

One of the surprising revelations from Report on Chainalysis’ Global Crypto Adoption is P2P trading “decreased dramatically“in China. At that time we naively asked:

Why are the Chinese giving up P2P trading so radically? Wouldn’t the “government crackdowns on cryptocurrency trading” instead cause a surge in old P2P trading?

This “High pressure situation“The People’s Bank of China claims could be the answer to both questions. As we have learned, both are “the popularity of virtual currency trading “and” China’s popularity ” significantly decreased. China is as tough on the general population as it is on its largest industries. Bloomberg tried to explain their steps by defining the “New China Model” how:

If China abandons the Silicon Valley model, what will it replace it with? Insiders suspect it will be less founder-oriented and more China-centric.

Related reading | China has banned bitcoin mining. What is happening now to small hydropower plants?

We ended this article with more questions than answers. From “Why is China dwarfing its largest industries and players? Is the “China model” just about the scale?” To “Are your actions against Big Tech even related to your actions against Bitcoin mining?“And concluded:

We can only know one thing for sure: China is taking great coordinated steps when it comes to technology. And they seem to have a plan.

Maybe their plan is easier than we thought. It is possible that People’s Bank of China is making it really very difficult for ordinary people to access Bitcoin. And China will use propaganda and repetition to keep people in check and fear the unknown. One of Bitcoin’s prototypical adversarial scenarios. A fight that Bitcoin expected sooner or later.

Selected image by Bruce Röttgers on Unsplash – Charts from TradingView

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