Elon Musk slams China’s crypto ban, implying that Xi is afraid of losing ‘power.’
ELON MUSK has slammed China’s recent cryptocurrency crackdown, alleging that the politburo in Beijing sees Bitcoin and Ethereum as a danger to its rule.
On September 28, the SpaceX CEO spoke at Codecon, a tech conference for developers. “China does not embrace cryptocurrencies because cryptocurrency decreases the power of centralised government, which they don’t like,” Mr Musk told the event’s presenter. “You can affect cryptocurrencies more than China?” the event’s host then challenged the Tesla CEO. Mr Musk simply smiled in response, before adding, “crypto has a long-term purpose, and it is impossible to kill crypto.” “Governments should do nothing and leave Bitcoin alone,” he stated.
The revelation comes on the heels of China’s recent blanket ban on cryptocurrencies, which many believe is intended to pave the way for Beijing’s own digital currency to be released later this winter.
China is now testing a state-backed digital currency called the Digital Chinese Yuan.
This new digital money will have all of the benefits of a cryptocurrency, but none of the privacy or decentralization.
Beijing hopes to have the Digital Chinese Yuan up and operating and accessible for usage by overseas visitors during the 2022 Beijing Winter Olympics.
As a result, China has pursued a scorched-earth approach on all cryptocurrencies that are not under its control.
The Digital Chinese Yuan will live with any other virtual asset, such as Bitcoin or Ethereum, according to Beijing.
China’s central bank and the National Development and Reform Commission released a paper in late September prohibiting cryptocurrency mining within the country.
This was a follow-up to a May crackdown that sent shockwaves through the cryptocurrency markets.
On September 24, the Beijing Central Bank published another paper declaring all cryptocurrency transactions unlawful in China.
All organizations that provide bitcoin trading services to Chinese residents will be considered to be involved in illegal financial activity, according to the paper.
“The ban is sweeping, total, and comprehensive,” Jonathan Padilla, a co-founder and deputy director of Stanford University’s Future of Digital Currency Initiative, told Wired.
“It isn’t narrowed down to a single aspect.
“This appears to be a priority for top-level government officials.”
The paper dated September 24 did not, however, have the same impact on cryptocurrency markets as China’s crackdown in May.
“Brinkwire Summary News” is an example of a prominent cryptocurrency.