Before the ban on cryptocurrency exchanges, China was once one of the world’s top bitcoin buyers. In 2017 the Central Regulatory Authority of China known as the People’s Bank of China (PBOC) issued a statement regarding the ban of cryptocurrency exchanges and ICO websites.
It issued frequent advisories and took measures to discourage people from using cryptocurrency in the nation. The Chinese Government was concerned about fraud as cryptocurrencies are not regulated and do not have any legal status like other currencies. Concerns about financial stability initially triggered the move of putting a ban on cryptocurrency exchanges.
Recently, the statement given by Deputy Governor, Li Bo of People’s Bank of China (PBOC) during the panel hosted by CNBC indicates a lift from the ban of cryptocurrency exchanges. and shows a change in tone. He said cryptocurrencies are not a currency per se. But called the Bitcoin Profit app as an ‘Investment Alternative.’
What China feels about regulating bitcoin and other cryptocurrencies
We all know that China has concerns regarding the legal status of cryptocurrencies. And, it was one of the major reasons for a crackdown on cryptocurrency trading. The banking system of China does not accept cryptocurrencies and also does not provide related services. Because of the financial risks associated with such currencies, the government took a number of regulatory steps to crack down on a cryptocurrency exchange.
Since virtual currencies are not issued by any recognized monetary institution and lack any legal status that would make them equal to money, the PBOC has been advising against their use as a currency.
But considering Bitcoin and some other stable cryptos as investment alternatives, China along with a number of other nations, is considering regulatory criteria. Although it may be limited, some kind of regulatory provision is needed to prevent the speculation of such assets from posing serious financial stability risks and to see the crypto assets going forward.
Benefits of adopting cryptocurrencies
- The main benefit is that it allows its users more autonomy.
- It works through a decentralized system that allows greater benefits than the traditional system
- Because of the system’s decentralized existence, no intermediary has the ability to manipulate it for their own gain.
- It saves you from different types of legal fees when making a transaction.
- It is instant and has 24 hours availability.
- Besides their risky nature, they can provide you with greater returns.
Benefits of holding Bitcoin
- As opposed to other cryptocurrencies on the market, it is the most secure.
- Thousands of people and companies use it as a payment mechanism.
- Many countries are accepting payments in Bitcoin. You can pay through Bitcoin instead of fiat money.
- It is a peer-to-peer platform that eliminates conventional banking fees associated with fiat currencies.
- The price rises as the network expand and people want to keep more bitcoin deposits.
- You have more control over your personal information and personal data.
- It has proven to be more resilient than fiat money in a moment of crisis.
If you have more queries and you want to learn more about cryptocurrencies and trading.
Impact of Bitcoin and other cryptocurrencies on Global Economy
There has been a greater debate on cryptocurrencies since their inception. Let’s talk about the global impact Bitcoin and other cryptocurrencies have on the economy of different countries. Cryptocurrencies, particularly Bitcoin, is widely functional but also unpredictable that now has gradually but steadily begun to disrupt the traditional financial system.
Many companies throughout the world are moving towards cryptocurrencies. Digital money can be transferred anywhere in the world at a very low cost using crypto signals. Bitcoin has already allowed many people and businesses to grow and prosper, and many people and businesses depend on trading as a source of income. The economy is gradually adapting to these needs, and cryptocurrencies have a lot of potentials to meet them.
A large percentage of the world’s population lacks access to basic banking facilities that could assist them in the event of a financial emergency. That means it has the potential to back poorly banked countries too. A large number of platforms are available including mobile apps that allow the users to use cryptocurrencies from anywhere around the world.
Both blockchain and cryptocurrency transactions are recorded in a distributed ledger since they are automated and digitized. These transactions cannot be influenced by individuals or businesses. That reduces the possibility of fraud and corruption. Consequently, under-developed countries have a better chance of joining the financial transactions game and boosting their economies.