November 26, 2022

China Imposed Crypto Crackdown to Clear the Way for Its CBDC: Christopher Wood

2 min read

The financial expert and Global Head of Equity Strategy at Jefferies – – Christopher Wood – suggested that the Chinese officials want no competitors for its digital renminbi. That is why they imposed the crackdown on bitcoin and other cryptocurrencies recently.

China Cares About its CBDC Not Carbon Footprint

Christopher Wood – – the prominent financial expert focused on the Asian market – – assumed that there is more to the story behind China’s unfavorable stance against crypto mining and trading. In his viewpoint, the authorities do not truly care about CO2 emissions and the environment as they might have declared in the past. All they go for is to neutralize the competition to its own digital yuan:

“Certainly, the decentralized elements of blockchain innovation, which is so enticing to libertarians opposed to fiat currencies as state monopolies, is the complete reverse of China’s collectivist system.

The People’s Republic of China plainly comprehends this. This is definitely a much more essential problem to Beijing than the carbon creating aspects of bitcoin mining.”

Wood predicted that the most inhabited nation is really close to introducing its CBDC as he expects that to occur at the end of 2021:

“China does not want any competitors when it releases the digital renminbi nationally, most likely in the fourth quarter of this year.”

Compared to China, the financial expert anticipates the United States to be much more flexible and accommodative towards cryptocurrencies. He kept in mind that such bans are not likely to take place in western countries.

Christopher Wood. Source: TheMarket

Christopher Wood. Source: TheMarket China’s War on Crypto In late May, the Financial Stability and Development Committee of the State Council of China reiterated the restriction on Bitcoin mining and trading. A regional reporter noted that “this is the very first time that the greatest level of the Chinese Government has clearly proposed a blow to the mining market.” Following the statement, bitcoin’s dollar value plunged by almost $5,000 in a matter of one hour.

The fiat currency price of the primary digital possession suffered another considerable blow recently when the Agricultural Bank of China revealed a restriction on crypto use. As CryptoPotato reported, the third-largest bank in the country disallowed its clients to communicate with bitcoin and other digital assets.

The crypto neighborhood speculated that the giant state-run bank intensified its negative crypto position since of the incoming digital yuan. It comes as no surprise that the third-largest Chinese bank is in fact working on the e-yuan and has actually launched previous tests.

Featured Image Courtesy of MoneyControl