Bitcoin is an undisputed king of the crypto market. Analysts have predicted its inevitable doom so many times. Yet, its rivals have failed to dethrone it and bitcoin keeps on rising. Apparently, the People’s Bank of China has realized that it is impossible to beat bitcoin on fair grounds. When the obvious criticism did not bring anticipated results, the regulator took a tougher stance and simply banned it.
This is not a secret that the central bank has been working on its own state-controlled digital currency for some time. For a long time, it has tried to convince people that bitcoin and cryptocurrencies as a whole are not backed by anything and they are completely unreliable. This is why the digital yuan is the best choice for crypto investors. Yet, this statement was not received with wild enthusiasm. Even the fact that the digital yuan will cost at least half of bitcoin has not changed the situation. When all the attempts failed, the regulator literally stepped on the warpath.
The People's Bank of China called any operations with cryptocurrencies speculation and advised traders to stay away from crypto-related transactions. Yin Yuping, a Deputy Director of the Financial Consumer Protection Bureau of the Chinese Central Bank, called on Chinese citizens to "protect their pockets" as bitcoin is not legal tender and has no real value. "In response to a possible increase in the number of transactions with cryptocurrency, the Central Bank, together with the relevant departments, will identify foreign crypto exchanges and local traders, as well as block and take action against websites, applications and corporate channels," Yuping emphasized.
