Is China's Ban on Bitcoin Temporary?
To pacify communists and International agencies before the convention of the communist party, China's ban on cryptocurrency and Bitcoin seems temporary.
The banks and the huge government of China are not able to tolerate Bitcoin because of the threatening of their actuality.
In the near future, the replacement of the Yuan in day-to-day transactions and as monetary valued asset will be done when Bitcoin has the potentiality to do so.
Since the economy of Bitcoin has not been flourished, it is considered to be small to pose a threat to the government of Beijing and the system of banking it sustains and manages.
The reason behind the ban of Bitcoin still remains unknown. Just like Beijing's effort to show that G&P Global control over the conditions of the credit and financial system is on point and going good to the international agencies.
This plan did not work because a few weeks ago, S&P Global downgraded China.
In the upcoming 19th convention of the communist party, the leaders of the party will be threatened by the hardcore communists, if they talk anything related to the innovation that affects the communist party holds on the economy.
Beijing has done this in the past as well. They did get threatened because of the innovation aspects back in 2011 prior to the 18th convention of the communist party. The leaders of the party were behind a Chinese controversial entity structure called Variable Interest Entity (VIE). Through reverse mergers, the variable interest entity has allowed the companies in China for listing their shares in the US exchange market. This strategy led to the scrutinization of the US regulators because of the companies’ irregular accounting activities.