China's Cryptocurrency Crackdown: Why it Matters | Shifu Digital

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In this episode, We will discuss in detail China's Cryptocurrency Crackdown: Why it Matters | Shifu Digital.
Cryptocurrency is a digital currency which is getting its hype during the last decade. It is expected that it might replace the normal currencies in the upcoming years since people have started trusting digital currencies and investing in them.
The most valuable cryptocurrency is Bitcoin, and one bitcoin is equal to 50,249.50 United States Dollars. The government doesn't control these cryptocurrencies. A major distinguishing feature of cryptocurrencies is that they are normally not issued by any central authority, making them completely immune to government interference.
Is China cracking down the cryptocurrency?
From the invention of the cryptocurrency until now, there was no government control, and the cryptocurrency achieved a great milestone in China, including mining, Initial coin offers, and cryptocurrency exchange.
But recently, the government started to interfere with cryptocurrency regulation. They issued a draft to shut down all cryptocurrency mining in China by the end of April 2021.
There is a huge industry of cryptocurrency in China. About 60-65% of the currently circulating Bitcoins in the world were mined in China & around 80% of the Bitcoins of the world were produced by the Chinese miners. So, the ban affected the miners badly.
People's Bank of China (PBOC) is the central regulatory authority that regulates financial institutions and establishes all these policies regarding cryptocurrency. They have announced that they would cease access to all types of cryptocurrency exchanges.
China launches its own digital currency – Yuan
Unlike cryptocurrencies, Yuan comes under the control of the government to ensure there aren't valuation differences between the paper bills and coins.
That means it won't replace cryptocurrency for investors and traders. No one besides the People's Bank of China can generate a new digital yuan.
The central bank says it may initially set a limit on how much digital yuan individuals can keep as a measure to control its circulation.
China's central bank won't use the advanced technology to get more money into circulation because every Yuan issued digitally will cancel the other one in physical form.
Why does it matter?
Many countries, like Saudi Arabia, Venezuela, India, and now China, have banned these cryptocurrencies.
When people keep their money in banks, it turns out to create a positive impact on GDP possessed by an individual country because the banks can issue their reserves as loans. If everyone keeps their money in their homes as gold and on their electronic devices as cryptocurrencies, then the GDP of these countries will face a disastrous downfall which will affect the entire economic system overnight.
It cannot be more emphasized that cryptocurrencies are in an uncertain state under the law around the world, even now. It is difficult to sue someone over a currency deal; you can't claim that you were cheated on price because there is no certain standard. If you're going to play with cryptocurrencies, do it at your own risk. There will be no government agency to assist you in this regard.

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#WhatisDigitalCurrency #DigitalCurrencyChina

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In this episode, We will discuss in detail China's Cryptocurrency Crackdown: Why it Matters | Shifu Digital.
Cryptocurrency is a digital currency which is getting its hype during the last decade. It is expected that it might replace the normal currencies in the upcoming years since people have started trusting digital currencies and investing in them.

ShifuDigital