China, renminbi
China’s yuan renminbi fell on Monday to its lowest level since December. | Source: Shutterstock

By CCN: Perhaps no country has tried harder to snuff out bitcoin than China. After putting the kibosh on ICOs, the government banned crypto exchanges and now they’re targeting bitcoin mining. While they may have slowed crypto down, especially in China, this train is moving full-speed ahead. Sooner or later, they might find themselves boarding, too.

Blockchain Research Institute Executive Chairman Donald Tapscott suggested that it’s only a matter of time before the renminbi makes its way onto the blockchain, telling Bloomberg:

“In 20 years, we’re not going to be using bitcoin in China. The Chinese people will use the RMB, only the RMB will become a cryptocurrency. The Central Bank of China will turn it into a digital currency.”

Chinese Government Is Intent on Hurting Crypto

During his recent trip to the East Asian country, Tapscott learned that President Xi Jinping believes the “blockchain is one of the two most important technologies for the future of China.” Funny, he could have fooled us. As for the ban on bitcoin exchanges, Tapscott says it’s a “mistake.”

The blockchain researcher goes on to explain a “dichotomy” in China, one in which the government has shunned crypto but deems the blockchain as okay.

“The government is quite serious about hurting crypto,” he said.

Central Bank Digital Currencies

It’s a lot easier for centralized entities to embrace blockchain technology than it is for them to accept crypto. Any decentralized currency that does not require the control of a central bank threatens to disrupt their purpose. Yet even the IMF’s Christine Lagarde believes that cryptocurrencies are “shaking the system.”

China’s Crypto Would Be Just the Beginning

Meanwhile, it’s not just China that could see its own cryptocurrency. In his book entitled “Blockchain Revolution,” Tapscott points out that a Bank of Canada official wants to see “central banks everywhere…seriously study the implications of moving entire national currency systems to digital money.”

Meanwhile, Bank of England Economist Andrew Haldane “famously proposed a CBDC [Central Bank digital currency] as a solution to the inability of central banks to set negative rates of interest on currencies in severe economic downturns.” While crypto hasn’t been around for a global economic recession yet, it’s only a matter of time.

Don Weinland of the Financial Times, however, argues that “no central banks are seriously considering issuing a CBDC at this time.” Instead, he points to “pushback” from the likes of the Fed and the Bank for International Settlements.

Nonetheless, if China is in play for its own crypto, however, it’s clear the “virus is spreading.” 

You May Also Like

3 Key Things the Mainstream Financial Media Is Missing About Bitcoin

Mainstream media is out spreading fear, uncertainty, and doubt (FUD) about bitcoin…

Ethereum’s Vitalik Buterin to Sign ‘Free Virgil Griffith’ Petition Following FBI Arrest

Ethereum co-founder Vitalik Buterin is signing a petition to free estranged Virgil Griffith who was arrested by the FBI on thanksgiving.

Analyst Explains Why Bitcoin Price Could Plummet to $2,020 in 2020

An analyst says bitcoin could crash to $2,000 to $3,000 range as…

VeChain (VET) Jumps a Whooping 26%, Thanks to an Iconic Retro Game Remake

Contrary to the rest of the crypto market VeChain (VET) is up 26% today and showing no signs of slowing down, but what’s driving the token?

Bitcoin Price Suffered 31% November Slump But a Hostile China Boosts Outlook

Bitcoin price dropped by 31% since October. Yet, Spencer Bogart sees strengthening fundamentals pushing BTC up in the medium-term.

Limited Edition Bitcoin Watch Beckons Mt. Gox Remnants

A limited edition bitcoin watch with a widely known Mt. Gox wallet was spotted in Abu Dhabi. Is the royal family linked to the scandal?