According to PBoC’s newly released report on China Financial Stability, all Chinese cryptocurrency trading platforms have been closed.
Thus, 173 Chinese virtual-currency trading and token issuing platforms have all exited without risk. In other words, the actions of the regulator did not cause much indignation over the country.
Just in: "The 173 Chinese virtual-currency trading and token issuing platforms have all exited without risk", from PBoC's newly released China Financial Stability Report (2019).
— cnLedger (@cnLedger) November 25, 2019
According to Chinese cnLedger, as the crypto platforms closed, there were no big social problems (such as suicides, parades).
At the same time, the Chinese government becomes a monopolist in the sphere of digitalization due to the lack of competitors. Therefore, the Chinese government has a complete monopoly to control any aspect of cryptocurrency development in China going forward.
Presently, perhaps China is moving more actively towards issuing its own digital currency.
Chinese Renminbi Launch
Therefore, Edith Cheung, a partner at Proof of Capital venture capital fund, told CNBC that China could launch its own cryptocurrency in May of 2020. The maximum period will be a year, according to Edith Cheung. According to her, one of the key tasks is to find a way to issue a new financial instrument.
It is known that the development of the Chinese digital Renminbi has been going on for several years. Despite this fact, the authorities refused to disclose the launch date of the cryptocurrency.
Note, there is an unspoken race between China and the United States at the moment. The main rivals are crypto projects: the digital Yuan and stable Libra of Facebook.
According to the Facebook CEO, the party that managed to launch its financial instrument first will receive an audience of 1.7 billion users who have not previously been connected to the services of traditional banks.
Edith Cheung noted that America should consider forming a response to the upcoming launch of the Chinese digital renminbi. In her opinion, the cryptocurrency of the PRC has the potential for rapid spread. The pressure of a new financial instrument created by China could adversely affect the position of the US dollar on the world stage.
What Effect Does China Have On The Cryptocurrency Market?
At the moment, the Bitcoin price continues to decline. And news from China, as usual, contributes to affecting the movement of the cryptocurrency market.
Following the most capitalized cryptocurrency, other projects from the TOP 10 rating of the CoinMarketCap resource also demonstrate negative dynamics.
At press time, BTC price is at the level of $ 6,936. Against the background of the drop, participants in the crypto community gave forecasts of the further movement of the digital asset market.
According to the popular trader and analyst Tony Vays, Bitcoin is waiting for a decline to the level of $ 4,500. The specialist reminded the readers of his microblog that this forecast was presented to him during the Consensus 2019 conference.
6 Months ago at #Consensus2019, @cryptomanran & I bet on #Bitcoin pulling back to $4,500. Price of $BTC was about the same but trending up, now it's trending down.
I'm just as confident today as I was then, 6 months to go!
Full Video (comments are funny): https://t.co/z1STRhnp4e pic.twitter.com/GSosMyP3NW
— Tone Vays [Vegas – Unconfiscatable.com] (@ToneVays) November 24, 2019
Note that against the background of a decrease in the cost of BTC, several large transfers were registered in the cryptocurrency network.
An analyst who owns a blog under the nickname Bitcoin Jack agreed with the opinion that a new wave of decline may await ahead of bitcoin. The specialist believes that in the worst case, cryptocurrency can drop to the level of $ 2930.