A Member of Chinese Think Tank wants Chinese Authorities to Hold on Digital Currencies. China has been in the focus of digital currencies world for the last couple of weeks but not for good reasons. Last month it has been cracking on digital currencies like no other country in the world. Banning Initial Coin Offerings, closing all digital currencies exchanges – all is done to make cryptocurrencies unavailable in the entire country.
However, not all people in China think that is a good idea and many of them have been speaking against those decisions. A couple of days ago, one of the Chinese prominent university professors of economy and finances called upon the Chinese government to issue state-backed cryptocurrency or they will be left behind as the globalization includes the well-developed digital currency market.
But a member of Chinese think tank has spoken against digital currencies and he explained why digital currencies are causing instability in the financial market and potentially in the entire country. Zhou Ziquan said that today’s digital currencies have become a very unstable force that could have huge consequences on the socio-economic system of the entire country. He also said that the authorities were aware of that fact because they have reacted by banning ICOs and shutting down digital currency exchanges.
Digital currencies have been on the rise in the last couple of months to the level that many countries all over the world were forced to react. Countries, including China, Singapore, United Arab Emirates, Malaysia, and the United States have all warned their citizens against the dangers of digital currencies but China went the furthest with their actions against digital currencies. Before that China was the world’s leader in that industry but with the new policies that changed. The new leader in the digital currency market is Japan and this country is now the biggest Bitcoin exchange market.
China is not the only country that has been introducing regulations in this aspect as Malaysia and Russia have also announced similar actions. Though, the regulations that Russia has announced would go in completely different direction. Russia is currently preparing for providing digital currencies legal status and including them on the Moscow stock exchange. If they managed to do that, they would become the first country in the world that has officially recognized digital currencies as the viable currencies.
What many countries all over the world seem not to understand is the fact that Bitcoin as well as the blockchain technology on which Bitcoin is based, are here to stay and that the future financial markets will have to include digital currencies. Otherwise, established financial markets will be crushed with the up and coming markets of digital currencies.
Written by Vedran Ostojic
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