The Chinese government will revisit the ban on cryptocurrency trading and there is a high possibility that the verdict will be in favor of regulating the market.
The People’s Bank of China had imposed a ban on local and international cryptocurrency exchanges as well as ICO websites earlier this year. On the contrary, Zhou Xiaochuan, Chinese Central Bank Governor indicated that government sees the digital assets as an unavoidable step in the evolution of money.
The governor said that digital assets will inevitably replace paper money and coins. The People’s Bank of China has been studying Bitcoin and also other cryptocurrencies to aid in issuing its own cryptocurrency. Recent posts in the People’s Daily newspaper of China indicates that the Chinese government is considering a relaxation on the ban of cryptocurrencies, however, a total removal on bans is probably an ambitious expectation. The article said –
“..Fencing off Bitcoin exchanges can’t effectively end Bitcoin trade, and fears of a Bitcoin bubble could leave China behind in the digital currency revolution.”
China has a right to keep their market from entering the volatile atmosphere of cryptocurrency trading, says the editorial. The volatility may pose a threat to China’s financial system and therefore, they would thread carefully.
A proactive stance on crypto-trading market as in the US is considered more effective in the long run than the reactive bans and restrictions on the industry. The newspaper stated that –
“[The] more proactive stance the US takes in regulating the cryptocurrency market… over time will contribute to digital currency sophistication in the world’s largest economy. It’s time for China to lay the regulatory groundwork for its rise as a future digital currency trendsetter.”
The fact that editorials in the People’s Daily newspaper are not purely independent thoughts; they are considered authoritative statements of policy from the Chinese government in order to inform the public or to gauge their reaction. The above news is viewed as such an announcement.