China’s proposed ban of Bitcoin (BTC) has been a subject of discussion in the crypto space.The regulatory step has since received both backing and criticism due to the image China hold in the cryptocurrency.
However, a number of experts like eToro’s senior analyst, Mati Greenspan, have termed the ban proposal a blessing in disguise for Bitcoin (BTC) and the world of cryptocurrency, claiming that the hike in price of the electricity in the country will correspond to the price growth of Bitcoin (BTC).
The attempt of banning Bitcoin (BTC) mining in China will as a matter of fact affect the country’s economy since China is biggest market for computer hardware designed to mine Bitcoin and some other digital assets.
Donald Tapscott on the Ban and the Future of Cryptocurrency in China
According to a report, the executive chairman of the Blockchain Research Institute, Donald Tapscott, has claimed that Renminbi (RMB), the official Chinese currency will soon be changed to a cryptocurrency.
Donald Tapscott further shared that he was in a meeting in China with the Communist Party’s Vice Chairman, who revealed the thought of Chinese President, Xi Jinping, about blockchain and the connection it has with the growth of technology for the future of the country.
In Tapscott’s view about the proposed ban of cryptocurrency mining in China, he said it is indeed unnecessary to ban crypto mining in China.
Read his statement below;
“It’s not really necessary to do that [to ban exchanges and mining] because in 20 years we are not going to be using bitcoin in China. Chinese people will use the RMB, only the RMB will become a cryptocurrency. The central bank of China will turn it into a digital currency.”
Decentralised Exchanges will soon dominate Centralised ones in China
Tapscott further added that the transparency and the ability to swiftly identify “bad behavior” within the crypto space has given decentralised exchanges an edge beyond the centralised system of currency exchange, which would boost the chances of the former dominating China.
History of Renminbi (RMB)
Renminbi is known to be the official currency of the People’s Republic of China needed to buy or shop upon visiting the country. The currency is also called Yuan and kuai by the citizens of the country.
According to history, People’s Bank of China created Renminbi in 1948 purposely to initiate harmony in China in terms of unification of currency since there were several types of currencies in circulation in the country back then. Also, the creation of Renminbi gave the Communist Party the prominence to control the whole land of China.