China Crypto Ban: Are we expecting e-Yuan anytime soon?
Whilst the bruited ban on cryptocurrency in India still floats in the air, the China Crypto Ban has taken everyone by surprise. This ban deems all crypto transactions to be illegal.
The People’s Bank of China (PBC) declared all crypto transactions illegal and has decided to uproot the mining of digital assets altogether, which was one of the most striking blows to the entire crypto industry yet. The notice issued by PBC held allegations on Bitcoin, Ethereum, and many other popular cryptocurrencies for hindering the fiat currency, and disrupting the financial system.
With this notice issued by the PBC, a few popular cryptocurrencies have taken a serious hit. For example, Bitcoin has suffered a shrink by more than 9% to $41,085. Ethereum fell from $3,100 to $2,800 with a skid of almost 10%.
This is not the first time when China has tried to enforce a ban on a budding international opportunity. After banning WhatsApp and Google, China came up with WeChat and Baidu respectively. Talking about internet sensations, China has also banned YouTube and Facebook! Yet again, one of the most budding financial systems was restricted with this China crypto ban.
Right from 2013, China has banned banks from handling crypto transactions. In September 2017, China had banned Initial Coin Offerings (ICOs). The government issued a reminder on this ban this year. The massive energy consumption of crypto mining is also one of the reasons for reinforcing this crypto ban. In order to meet China’s carbon goals, the economic planning agency has considered this as an urgent task.
Now, coming back to the rumored crypto ban in India, this sudden China crypto ban has all the investors worried. Many Indian investors are considering squaring off their accounts and others are seeking refuge under cryptos like Bitcoin, Ethereum. In the past 2 days, Indian exchanges have seen a surge of 50% surge in transaction volumes.
Here’s why India should not ban Crypto.
China had announced the launch of its own digital currency. China has been trying to uproot crypto for a long time now, and with this announcement of their native digital currency, most of the experts saw this ban coming. Investors still hope for the PBC to reconsider their decision and create a pro-crypto environment in China.