China to reinforce its no-crypto policy

China seems determined to continue a “no-crypto” policy: after the crackdown on mining, it will take proactive steps to detect traders using offshore crypto exchanges and block trading websites and apps.
This is a perfectly logical step for such an authoritarian regime, especially considering its significant progress in the matter of CBDC, or Central Bank Digital Currency. Built on a blockchain-like technology, a CBDC is still fully controlled by the Central Bank, which gives it a crypto-like efficiency combined with Big-Brother-like control over every single transaction.

Independent and inherently free Bitcoin and other crypto represent an opposite ideology, and it makes sense that the Communist Party would like to ban it. It’s not sure that they succeed to hinder all crypto use, but Chinese crypto adoption will most certainly be impeded. Will it affect crypto itself? One glance at Bitcoin hashrate, already half-recovered from -50% drop after the mining crackdown, can suggest that crypto doesn’t care. Its decentralization makes it an ultimate resiliency mechanism, ready to thrive anywhere.

It remains to be seen if Chinese strategy pays off for China itself in the long term. People’s Bank of China official stated that crypto “has no actual value”, but omitted to precise that the value is not something that is given centrally – value is assigned to an asset by people who use it.