Recently, the Chinese authorities issued a warning to local firms to avoid engaging in crypto business. Such regulatory bodies as the Beijing Local Financial Supervision and Administration Bureau, the Business Management Department of the People's Bank of China, the Beijing Banking and Insurance Regulatory Bureau, and the Beijing Securities Regulatory Bureau, have all asked companies to refrain from promoting crypto investments. The authorities warned investors that investing in cryptocurrencies may involve risks of financial losses. Moreover, the traders were encouraged to report any violations of laws and regulations regarding crypto markets. However, it seems that such sincere care of investors and individual traders is actually a common measure of tightening control. It is well known that the Chinese government has an aggressive stance towards overseas projects that it cannot control. For instance, Facebook, Google, Twitter, Wikipedia, and even cartoons with Winnie the Pooh are prohibited in the country. Now, digital currencies in China will face the same fate. At the same time, the country's authorities are eager to use Western technologies to strengthen control over the population, and the blockchain seems perfect for this goal. Thus, the People's Bank of China is already testing a Chinese version of digital money. The final stage of testing the currency will be carried out this year. Under the new system, the central bank of China will provide its digital currency to commercial banks in exchange for their yuan-backed reserves. Further on, companies and citizens can open digital wallets in these banks and fully use the new tool of electronic payment.
