Still FUD? China's central bank deems Bitcoin (BTC) "worthless"

China’s central bank tackles Bitcoin again

The Central Bank of China has expressed its opinion regarding Bitcoin through Yin Youping, the deputy director of the consumer protection bureau. The latter explained in an official communication:

We are once again reminding the people that virtual currencies such as Bitcoin are not legal tender and have no real value support. »

The financial institution is therefore urging Chinese people to consciously stay away from what it considers to be ” pure investment speculation». The Central Bank of China also confirms that it will step up its monitoring of foreign marketplaces, and block Bitcoin/cryptocurrency trading sites and apps.

Find all the news about Bitcoin (BTC)

Bad times for cryptocurrencies

As a reminder, the Chinese government spent part of the summer cracking down on the cryptocurrency mining industry. Moving from words to deeds, it has forced local miners to relocate, province after province.

And this particularly hostile stance is set to continue, according to Yin Youpin. As a result, China’s central bank wants to ” maintain a high-pressure situation ” to continue cracking down on cryptocurrency-related transactions.

FUD to prepare for the launch of the digital yuan?

The hostile attitude of the Central Bank of China has been reinforced as the launch of the “digital yuan” approaches. Thought of as a way to compete with the dollar, China’s digital currency will be widely distributed in conjunction with the Beijing Olympics, which will take place in 2022.

For the Chinese government, it is therefore crucial to maintain the status of its yuan – digital or not – by ensuring that other alternatives such as Bitcoin do not gain too much momentum in the country. This is why the central bank’s “FUD ” seems to have intensified in recent months.

Going further – China unveils digital yuan white paper and confirms use of smart contracts

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About the author : Marine Debelloir

Still FUD? China's central bank deems Bitcoin (BTC) "worthless"

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Deputy Editor-in-Chief on Cryptoast, I fell into the crypto-currency pot a few years ago. I’m passionate about the innovative technologies that stem from blockchain and I love to dig up the most juicy news to share with you.
All articles by Marine Debelloir.