Although a decline was observed in the markets after the news of the cryptocurrency ban from China in the past days, decentralized exchanges first showed a rapid and very strong rise. Following this rise, many other coins, especially Bitcoin, started to rise again. It seems that the news of China’s cryptocurrency ban could not have been more than a short-lived effect, to put it differently, “Is China’s cryptocurrency ban ignored by the market?” Here are the details of the cryptocurrency war between the USA and China.
The huge restrictions and control in the cryptocurrency world may cause governments to introduce their own digital currencies in the coming days. The idea that the Chinese government’s anti-crypto moves are an indication that China is completely against cryptocurrencies is a big misconception.
According to an article in Bloomberg, the Chinese government, which wants to compete with the USA, may be making some ban decisions to try to control the rapidly developing and expanding cryptocurrency industry.
After restrictions on cryptocurrency transactions in China, the Chinese government has been considered one of the countries that is not satisfied with the use of cryptocurrencies by its citizens. On the other hand, a group led by El Salvador has made or wants to make Bitcoin and its derivative cryptocurrencies the official currency.
It is a well-known fact that the USA gained the biggest advantage after the ban news from China. The most recent SEC action was a statement about the regulator’s plans to control the industry. As it is understood from the statement, the SEC does not currently have a thought to restrict the use of cryptocurrencies as a means of payment.
After the recent “1,600% bull run” in Bitcoin, financial institutions in the US have started to take a closer look at the digital asset industry and attract their clients to it. Most likely, this was the reason for the increased activity by the regulator. With full control over the industry, more institutional investors will be able to enter the $2 trillion market and feel relatively safe in it.
Digital Yuan vs Bitcoin
China’s main aim is to put the Digital Yuan against BTC instead of fighting Bitcoin. Without competition in the market, the digital yuan will be the only means of payment in the country, leaving the entire digital asset industry under the control of the People’s Bank of China.
Do you think this kind of cryptocurrency activity is a move in line with its main purpose? We are curious about your thoughts.