New developments and speech by Chinese President Xi Jinping indicate that the country might lift the cryptocurrency ban that was placed in September 2017. The future of cryptocurrency in China is likely to be bright considering the new developments that have taken place in the country.
According to the local press and public sentiment on social media, this is the right time for Beijing to readdress the cryptocurrency ban. President Xi Jinping echoed the sentiment of the public and media by terming blockchain a part of the “new industrial revolution” during a speech at the Chinese Academy of Sciences’ nineteenth annual conference in Beijing that took place on May 28 this year.
China’s interest and increasing support for blockchain is evident as it is all set to release its national blockchain standards for firms by this yearend or by the end of 2019. China Central Television (CCTV), which is the nation’s state-owned television station referred to the blockchain monetary value as“10 times more than that of the internet.” Further, China’s Ministry of Industry and Information Technology recently launched an all-new public cryptocurrency rating system. After pitting cryptocurrencies against one another, the government ultimately declared Ethereum as the leading crypto at this moment.
Back in 2017, Chinese authorities cracked and banned cryptocurrencies including bitcoin and initial coin offerings after People’s Bank of China declared that these activities could pose a major financial risk to the country’s economy.
China cannot ignore the power of cryptocurrency and blockchain
During his recent speech in Beijing, President Xi Jinping seemed aware of the cryptocurrency wave that has been sweeping the globe and the country in particular.
Ever since the start of the 21st century, a new generation of the industrial revolution is substantially reshaping the global economic structure with artificial intelligence, internet of things and Blockchain constantly making application breakthroughs.
A recent article in Chinese daily newspaper Global Times praised cryptocurrency and demanded change in the government’s policy.
There’s an increasing belief that just saying no to Bitcoin won’t be the eventual solution to the cryptocurrency issue. A more fundamental approach would be to embrace the new technology without putting the country’s financial system at stake…
But fencing off bitcoin exchanges can’t effectively end bitcoin trade, and fears of a bitcoin bubble could leave China behind in the digital currency revolution. Instead, the country should consider rules and regulations that can ensure the technological advance works in the economy’s favor.
Bobby Lee, CEO, and co-founder of BTCC, which had to shut down its China trading operations is of the opinion that the country will sooner or later be forced to lift its ban on cryptocurrency. However, he was unable to give a definite timeline as he thinks that the whole process could take a few months, a few years or even a few decades.
In this world, nothing is ever permanent. One day I think it’s possible they’ll lift the ban, so called, and they might reinstitute it and license it. The more the governments and the regulators tried to put a squeeze on bitcoin, the more we see that bitcoin is actually resilient.
It is hence clear that it is just the matter of time when China will have to lift its ban on cryptocurrency and accept it as part of the country’s developing economy.
Watch this space for more updates.