It will no longer be possible to exchange them. It will no longer be possible to create them. China has decided to close its market to all cryptocurrencies. The promise is to eradicate all these activities, now considered illegal. Ten government agencies in Beijing, including the Central Bank and foreign exchange regulators, made this decision known. A ban that the central institution, the People’s Bank of China, has also extended to all companies operating in the country. The press agency Reuters also reported a statement from Banca Popolare: “The government will resolutely repress speculation on virtual currency and related financial activities and misconduct in order to safeguard people’s property and maintain economic, financial and social order”. The news was immediately felt by the financial markets. Bitcoin is losing the 3,62% on a day when she had left a $ 42,367 (a good result compared to the data of the last few days) while Ethereum, less widespread than Bitcoin but still important in the sector, loses 7,44%.
The digital currency that Beijing focuses on
The decision to bury the crypto market throughout the country was not born only out of a need for control. The May 20 last, the value of Bitcoins had dropped below 32 thousand dollars after the government asked those who work in the field of finance not to organize transactions with any type of cryptocurrency. The goal is to focus on a single currency for electronic exchanges: the digital Yuan or Digital Currency Electronic Payment. The first transactions with this currency took place in August but the launch is expected to take place in 2022. Unlike Bitcoin, the digital Yuan would however be a Central bank digital currency (Cbdc), that is, a currency that relies on a system of central banks. The choice of China comes at a very delicate moment for Chinese finance, threatened at the moment by the Evergrande case.