China’s Bitcoin Battle And The Creation Of A Digital Currency Ecosystem

China’s Bitcoin Battle And The Creation Of A Digital Currency Ecosystem

For China: Digital currency, yes. But not bitcoin.

Blockchain? Yes. But not bitcoin.

The price of bitcoin, that marquee name in cryptocurrencies, has plummeted in the last several weeks, down roughly 20 percent at this writing to a recent $7,400, where the price had been more than $9,400 a month ago.

Whether you believe in bitcoin’s potential (or lack thereof) to become a viable conduit of commerce , the crypto’s pricing acts as shorthand for the near-term outlook for digital coins in general, and especially for those traded over exchanges.

We might trace bitcoin’s recent rally and recent fizzle to October, when Chinese President Xi Jinping said the country should refocus efforts on blockchain.

But there is an important distinction here, one that draws a stark roadmap for how the age of digital currency may shape up in China.

If blockchain might be thought of as the rails that underpin cryptos’ journeys as they move between parties, China seems intent on limiting just what can ride those rails.And bitcoin, increasingly, is not likely to be in the picture (nor would a slew of other coins) in a way that some may have hoped.As has been noted by The Wall Street Journal, the People’s Bank of China (PBoC) and government authorities (through the Shanghai office of China’s financial regulator) have said that they will continue a crackdown on exchanges that has stretched out over two years.The authorities have moved to shut down exchanges that are registered outside the mainland, and shutter companies that bring Chinese customers […]