China is one of the most important imperial powers in the world regarding its military and economy. China has a vast population that is working towards the common good of the government itself. Even though they are making money for themselves, they somehow contribute to the growth of government power. The people’s Bank of China decided to ban cryptocurrency transactions within the borders in September 2021 on each yuan-pay-group.net.
It was one of the most important steps taken by the Chinese government, and it had an important impact on the whole cryptocurrency space. But, what was the reason behind the same? The Chinese government justified everything very clearly that it has nothing to do with the cryptocurrency space. Still, the Chinese government wants to ensure that everything is safe within the borders of China.
However, the scenario could be completely different if we look at the global picture. Even though the Chinese government says it has nothing to do with the cryptocurrency space, there is everything to do with it. The primary reason why we can doubt the Chinese government is that it has always wanted the grab power.
It had never been able to let go of its greed to ensure that the Chinese government became an imperial power worldwide. So, it is pretty imperial to understand the reasons behind the same. To assess the real reasons behind the ban of cryptocurrencies in China, we need to understand the whole picture in detail.
The given reasons
China is a country where dominance is the key. The government makes sure that no one speaks against it, and therefore, the government keeps flourishing. The President of China has been in the position for a long time and is controlling everything that happens within the body. So, the imperial power of China has decided to ban all cryptocurrencies because it thinks they are not very best for the country’s good. A few of the most important reasons given by the Chinese government are –
- First of all, the Chinese government believes that the economy of cryptocurrencies is very harmful to Fiat money. If people keep adopting cryptocurrencies, they will not pay any attention to Fiat money, and therefore, the government will face losses. One vital thing to notice here is that the income goes into the hands of the cryptocurrency companies, and therefore, the government is left without anything. But, it needs to be considered that even though the government believes it to be economically harmful, it provides some income to the government through taxes.
- Another thing that the Chinese government has stated is that it has set a goal of zero carbon emissions by 2024. However, if the cryptocurrency mining operations are carried on within China’s borders, it will be impossible for the government to achieve this goal. At the global level, it says it will be straightforward to reduce carbon emissions if there is little electricity consumption. However, despite these reasons, the carbon emissions keep growing within China’s borders due to the high population and electricity consumption.
The Chinese government stated why the ban on bitcoins and other cryptocurrencies. However, the reality is entirely different. The truth about the reality is explained further.
Regardless of what the Chinese government says about banning cryptocurrencies, it is hideous and tries to fool people. It has always done the same. Nothing that happens within the borders of China has been genuinely exposed in the eyes of Other nations. Therefore, the same is the situation with the crypto coins ban. The real reason behind the ban of cryptocurrencies within the borders of China is not the carbon emissions or the economic Hazard but the launch of the Central Bank digital currency.
Yes, the Chinese government has decided to launch the digital Chinese Yuan, which will be an essential achievement for the nation. Moreover, the Chinese government wants this digital currency for the country to make global achievements; therefore, it cannot happen without banning all the other cryptocurrencies. It has to start this new wave of development in its own country; therefore, it banned all cryptocurrencies within China’s borders. Moreover, when there is not going to be any rivalry, there is going to be a success for the Chinese government.