The Financial Education Month is currently held in China. It is hardly a coincidence that this is the time when China is issuing its official digital currency: the government does not want the digital RMB to compete against other cryptocurrencies.
As part of this event, every Chinese citizen can participate in a lottery and win 200 crypto coins. At the same time, Chinese users are being warned that Bitcoin and other similar cryptocurrencies are illegal.
At a press conference on August 27, Yin Youping, Deputy Director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China (PBoC), emphasized that any cryptocurrency-related transactions are nothing but investment speculations.
He said, “We remind the people once again that virtual currencies such as Bitcoin are not legal tender and have no actual value support.”
Youping also mentioned that there is a possibility of a crypto market rebound. In anticipation of that, the central bank and relevant authorities actively monitor foreign cryptocurrency exchanges and traders. In fact, the interest in cryptocurrency trading has significantly decreased in China.
The organization also plans to crack down on cryptocurrency traders, block cryptocurrency trading websites, apps and channels, and to intensify its policy publicity.
The Joint Conference to Deal with Illegal Fund Raising collaborates with the People’s Bank of China to create systems aimed at the monitoring, early warning, publicity, and education in the area of cryptocurrencies. The goal of the institutions is to combat any illegal activities related to blockchain and cryptocurrencies.
Youping stated that the next step will be to establish a normalized working mechanism, to put high pressure on cryptocurrency operations, and to continue cracking down on cryptocurrency transactions. If citizens find out about any illegal fund-raising activities, they must timely report them to the competent authorities.
КThe Chinese are advised to stay away from cryptocurrencies and to “protect their pockets”. After many Chinese users made a fortune in mining, the government has decided to ban it, along with everything else that could hinder the strengthening of the digital RMB.
Obviously, if Bitcoin wasn’t banned, the digital yuan would have to compete against a major rival. When every citizen learns to manage cryptocurrencies, the government won’t be able to control crypto-related transactions. In this case, many users could prefer the more successful cryptocurrencies which are already actively traded around the world.