China banned Bitcoin. What now?
Short-term pain for long-term gain?
China is cracking down on Bitcoin. And this time, the ban is for real.
From a political perspective, it made sense. The CCP is known for its strict reign over society. A decentralized currency like Bitcoin posed an obvious threat to their power. A ban, therefore, was always expected, yet nothing ever happened until now.
In May of last year, China started a “beta test” of its very own CBDC (central bank digital currency), the digital yuan. A project the government has been working on since 2014. One year later, in May 2021, rumors became a reality when the CCP started to take action.
The people's Bank of China directed banks and payment providers to stop servicing entities dealing with crypto. And countless regions, including those where most of China’s hash power is located, started to crack down on Bitcoin mining farms.
It seems like China is preparing for the official launch of its digital yuan and doesn’t want any decentralized currencies interfering with that.
But what are the consequences for Bitcoin? Is it actually a net negative, or will it help us to move forward?
