China will review cryptocurrency regulation in an attempt to reform the forex markets

China will review cryptocurrency regulation in an attempt to reform the forex markets

By Roberto D. | CryptoFarm | 25 Dec 2019


This was reported by Reuters, with an article published a few hours ago, based on the statements by Lu Lei, deputy director of the State Exchange Administration; according to reports from the news agency, China is considering revising its cryptocurrency regulation in a more general framework of forex reform. Everything stems from the desire to encourage the expansion of the blockchain platform, currently being tested in 19 provinces, for the management of cross-border money transfers. Lu, as reported by Reuters, has in fact stated that:

We intend to gradually expand the pilot project to other areas and the application scenarios of blockchain technology in cross-border financing and macro-prudential management. At the same time, the government will carry out a prospective study on exchange rate reforms to address the new challenges generated by cryptocurrencies and explore the construction of exchange rate regulation and the technological system in this new context.

In all of this, the Chinese authorities continue to work to pass the concept that investing in blockchain technology does not mean clearing cryptocurrencies; this is done by continually remarking that the new CBDC, which will probably be issued next year, of the Chinese government has nothing in common with bitcoin, which the authorities continue to consider a merely speculative asset. Mu Changchun, deputy director of the People's Bank of China, has returned several times on this issue, the last one on December 22nd, and never misses an opportunity to underline how cryptocurrencies, according to the central bank, are to be considered merely speculative instruments and from which for so much the Chinese should keep away. It is difficult at this moment to understand how the next moves of the Chinese government will impact on the cryptocurrency market, it is currently possible to exclude a priori that, in the near future, a government crackdown against bitcoin may actually arrive; However, it is also true that openness to blockchain technology remains a positive signal for the market and that it is not even said that, in the near future, governments (not just the Chinese one) will not end up realizing that if you want to uncoupling the world economy from the US dollar the only currency that has, in the current scenario, some chance of succeeding is bitcoin.

How do you rate this article?


0

0

Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016 https://linktr.ee/robertod


CryptoFarm
CryptoFarm

All about crypto and airdrop

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.