China has a definite goal of promoting the digital yuan and making it dominate the global digital currency market.
Officially, China’s 2019 ban on interaction with cryptocurrency is related to corruption and money laundering. The authorities are still concerned about the circulation of crypto through online resources. In this regard, China’s three major organizations regulating the virtual and real banking market, such as the China Banking Association, China Clearing Services Association, and China Payments Association, issued a joint warning via social media.
The warning states that no one will reimburse them if they trade in cryptocurrency and cause losses in this manner. It also clearly states that the volatility of cryptocurrency markets poses a direct threat to the real asset market and undermines the normal flow of financial flows.
China against the backdrop of Western regulators
China’s cryptocurrency policy looks quite aggressive against the background of the calmness of Western regulators. But these processes are gradually escalating around the world, following the Chinese scenario.
As they promote their digital currencies, various countries are seeking to limit the circulation of existing currencies, most notably bitcoin.
China has a specific goal – the promotion of the digital yuan and its dominance in the market of global digital currencies.
Thus, the ban on mining in China is aimed at clearing the ground for the national digital currency.
According to experts, China plans to take the place of the main reserve currency with the digitalization of the yuan, among other things. The technologies that make the digital yuan work most effectively only if there are no independent competitors, at least within the Chinese state.
Several Chinese provinces have already supported the fight against bitcoin because it is virtually impossible to control. If bitcoin cannot be controlled, it is possible to establish control over technical equipment, internet space, and other crypto-related resources.