Tuesday, October 19, 2021

China Bans Digital Currency All Over Again—The World Now No Longer Controls Bitcoin

Chinese government agents told the People’s Bank of China Bank of China– for all things digital or digital money, “think bitcoin,” it has just announced, according to a report by the Wall Street Journal .

As Bitcoin has increased in value this year—nearly tripling in value from the start of the year and around $1300 as of Tuesday’s close, the image it has of a currency that’s safe from the outside world has been tainted. It has inspired more talk and more worry in China. Some are speculating that the government is preparing to ban the digital currency, or that they are cracking down. According to CoinDesk—a website that collects news on cryptocurrencies—on July 30th, the U.S. Geological Survey and CoinDesk reported that “Chinese authorities have raided four cryptocurrency exchanges, seizing computers and user records in a huge crackdown.”

Although based in Hong Kong, more than $170 billion has changed hands between Chinese consumers and their digital peers this year, according to Reuters.

If the Chinese government is closing in on them and banning all digital currency transactions from its borders—the black hole could be in full effect with the not so unwitting global losers.

In the wake of the announcement, Bitcoin’s value has dropped more than 5 percent on the news, dropping below $1200, according to CoinDesk.

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