For this reason, Bitcoin is disrupting the system in China.
Bitcoin is more than a commercial or investment vehicle for many people in China. In a situation where the repressive regime in Beijing continues to suppress the lives of its citizens, many of them turn to the BTC to overthrow the system.
The Chinese Government cannot put an end to the BTC, of course it would like to do so, but the ruling party in the People’s Republic of China simply cannot close the network of leading cryptocurrencies.
However, what the state can do is impose strict controls and monitoring of all financial transactions within the country, whether suspicious or not.
This general surveillance is Orwellian, at least, and the Chinese people are looking towards digital assets as a method of circumvention. At the Freedom Forum in Oslo, the uncensored Chinese producer Matt Gnaiza sat with the President of the Hong Kong Bitcoin Association Leo Wheese.
The first question was about the legality of the BTC in China, to which Wheese replied “ yes, but there is a clear definition of what is legal “. He added that any changes would first take place on the ground and that the authorities would react to cryptographic organisations and trades before making changes.
Digital currency exchanges are already prohibited and cryptographic mining operations have been banned in the Asian giant. It was also revealed that BTC’s microprocessors for mining machines are not manufactured in the country.
Previously, BTC mining flourished in China due to the prevalence of low-cost energy, mainly located in the mountains, where hydropower is abundant.
Apparently, cryptomining operations still spend about half of total energy consumption, but local governments do not appear to be concerned.
Current payment platforms assembled
China already has Wechat Pay and AliPay, but the government can monitor and do all the transactions for BTC to become a viable alternative.
Wheese went on to assert that BTC has also grown in popularity with dissidents or corrupt officials, who seek to move money without the big brother meddling.
People in China have been deprived of the opportunity to invest their savings, real estate markets are deflated, the value market is considered a scam and banks offer few investment tools.
The ICO boom was very popular in China, where people found a new avenue of investment and BTC was used to feed them. The government reacted quickly to ban ICOs. However, in the face of fears of a loss of investor control and funds, and the resulting instability, the government reacted quickly to ban ICOs.
Without a central authority, the leading crypto currency cannot be closed. The government must persecute individuals, which is costly and impractical. China is not willing to prohibit for fear of legitimizing it more and daring more attention. Finally, the presenter asked about the future of the digital currency and whether it should be invested. There is a growing fear that China will be isolated from the international monetary system, so if the yuan is not accepted elsewhere, the BTC could become the de facto currency.
This would benefit individuals and small businesses that can carry out transactions at world level, without being constantly controlled by the totalitarian regime. This will, of course, increase the demand for BTCs in China and around the world.
Media: Criptomonedaseico.com
