China’s involvement in the cryptocurrency space has created a lot of furor with the country taking a lot of steps to reign in the digital currency phenomenon. In a recent interview, Zhou Xiaochuan, the former governor of China’s central bank, spoke about the similarities between China and USA and how Bitcoin [BTC] plays a part in the bilateral dynamic.
Speaking to CNBC, Xiaochuan stated that cryptocurrencies have been used a lot in today’s scenario with Bitcoin acting as a huge propagator of the cryptoverse. He also added:
“A lot of people will use the network to have anonymous transactions. These anonymous transactions are mainly done through cryptocurrencies such as Bitcoin.”
China has always been an area of interest for cryptocurrency officials as evidenced by comments made by Ripple’s Chief Marketing Strategist Cory Johnson. He had said:
“Cryptocurrencies are different. That’s good, I think cryptocurrency is too limiting in the notion of what these things are but I think that things like Bitcoin have some real technological limitations. I think the limitations around how many transactions they can do per hour.”
Johnson also touched upon how 80% of all Bitcoin mining is done in China, therefore, concentrating the power with the Chinese miners. Xiaochuan went on to elucidate upon the similarities between the United States and China and how both the governments are trying their hardest to control anonymous commodities.
The former Central Bank employee also spoke about how cyber intrusion and other crimes are some of the major cases that the governments of both countries were invested to curb. China’s stance on digital assets has always been on the rocks, with the country deciding to ban cryptocurrencies in the subcontinent.
China’s intentions in the cryptocurrency space have also been considered shady by a lot of experts, a point stressed upon in a paper titled ‘The Looming Threat of China: An Analysis of Chinese Influence on Bitcoin’.
The first of the list is the ideological difference China shares with a decentralized currency. The report stated:
“Bitcoin stands in ideological opposition to China’s centralized governing philosophy, so they may be motivated to weaken or destroy it to make an ideological statement.”