update 26 November 2021

China Solicits the Public For Thoughts on Crypto Ban

Could the Chinese government reconsider its stance against cryptocurrencies? The country’s National Development and Reform Commission (NDRC) recently published a report seeking public opinion on the matter. China has dictated multiple bans on Bitcoin over the past 8 years. However, the government may have the motivation to not altogether reject its adoption.

China Consults the Public

Earlier today, the commission published its report to its website under the “Soliciting Opinions” (translated) category. It states that central departments have revised one of its regulatory catalogs on the subject of crypto mining.

(TRANSLATION): “In accordance with the relevant work arrangements for the rectification of virtual currency “mining” activities, the National Development and Reform Commission and relevant departments have revised the “Industrial Structure Adjustment Guidance Catalog (2019 Edition)”, and now solicit opinions from the public.”

The regulatory body will be hearing a public opinion from people of “all walks of life” starting today and until November 21st. The report reveals how Chinese citizens can share their thoughts with the government and thank them for their support.

The NDRC is China’s macroeconomic planning agency under the state council. It is responsible for “formulating,” “implementing,” and “coordinating” primary economic operations within the country.

As a communist nation, China’s economy is subject to far more regulation, control, and monitoring than developed western nations. Many, including Elon Musk, suspect this to be the reason China is opposed to decentralized cryptocurrencies.

What Can China Gain From Crypto?

However, their recent appeal to the public signals the potential for a reversal to their approach. After all, there may be certain advantages in allowing private cryptocurrencies to flourish.

Peter Thiel, tech billionaire and co-founder of PayPal, explained how Bitcoin could benefit China earlier this year. He framed it as a “Chinese financial weapon against the US” due to its ability to threaten the US dollar. China may love to see the US dollar lose its global economic leverage as the world reserve currency.

We can say the same about Russia, which has proven surprisingly open to digital currencies. President Vladimir Putin recently said that cryptocurrency “has a right to exist and be used as a means of payment.”

He, too, seeks alternatives to the US dollar for making international payments on sanctioned goods and services. Though he wouldn’t use cryptocurrencies for this quite yet, he did say that Russia may start accumulating some one day.

Btc
Bitcoin
$53.505
price
5.97026%
price change
BUY NOW

As things are, crypto is absolutely off-limits for the Chinese. In May, the country cleared all primary mining operations from its borders and started forcing exchanges out in December.