China is a country full of technological advancements and is often found right at the forefront of these leading changes. Cryptocurrencies, in a sense, are no exception to this rule. However, while China has been known to make up a good chunk of the mining community, it’s quickly becoming clear that the country isn’t quite as open to these decentralised coins as most may think. With their recent clamping down on all things cryptocurrency, from social media to investment apps, could China ever recognise cryptocurrencies as something good? We’re exploring exactly that, below.
A Previous Stance
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China’s previous stance on cryptocurrency is pretty much how you’d expect for something that the government can’t control – they found a way to control it. Initially, ICOs were the only banned entity surrounding cryptocurrencies, but this has gone further to the point of banning internet and mobile access to anything related to these digital coins. What’s more, despite 50% of the global mining population currently operating in China, the government were also removing miners from the country.
But with China still sitting as leaders in the industry, particularly for cryptocurrency adoption, could we see China finally embrace these coins, or try and stamp them out altogether?
Could They Be Opting For A Regulated Cryptocurrency?
According to Zhou Xiaochuan, governor of China’s central bank, the country is likely to try and regulate cryptocurrencies slowly due to the fact that “digital currency is inevitable.” As a country filled with contactless and mobile payments and with cash becoming increasingly rare as a choice for payments, it’s not difficult to see why this might be the case and why the bank in particular could be on board for providing regulation as opposed to a complete ban.
With rumours that the central bank is already doing its part to research into cryptocurrencies and their related technologies, it’s also been confirmed by Zhou that there’s no rush for regulation and that they are moving cautiously with cryptocurrency. With ongoing crackdowns on social media and internet mentions still ongoing, however, more and more crypto fans and enthusiasts could soon be calling for faster research and more in-depth regulation on a larger and much more efficient scale.
Could They Launch Their Own?
While regulation will provide a certain level of protection over crypto use, China are considering going one step further with The People’s Bank of China even talking about launching their very own official cryptocurrency called DCEP. Zhou had claimed that the lure of cryptocurrencies relied on efficiency of payments, and of course privacy and security, and thus this new coin would offer all. Through embracing blockchain technology, the PBoC could provide a new currency that could better cater to China’s ‘needs’ and ultimately offer a new kind of retail payment system that mimics cryptocurrencies without the lack of control by the government.
China’s future with cryptocurrencies is certainly still a murky one, but it’s looking far more promising than it has previously. With the central bank seemingly considering regulation or even the introduction of their own cryptocurrencies to cater for the market demand, it’s certainly looking brighter than it has in previous years. What do you think?