Cryptocurrencies are becoming more popular even in the most isolated and authoritarian countries. One of the most promising digital currency markets is located in China. Despite the fact that Chinese authorities are monitoring the situation. It is no secret that in China it is impossible to access many social media networks as well as other websites.
Nevertheless is has several important advantages in comparison with other countries. For example, China is home to more than 1.3 billion people. Also, it has the second-largest economy in the world. Moreover, it is the major Bitcoin mining hub.
In this situation, it makes sense to help the local crypto community. However, in September 2017 China made the decision to ban initial coin offerings (ICO). Cryptocurrency exchanges are banned.
Additionally, banks, as well as other financial institutions, are not accepting Bitcoin transactions.
On the one hand, China banned the cryptocurrency exchanges and this made it harder to develop the local digital currency market. On the other hand, the country is the leading producer of the equipment which is crucial for crypto mining. Also, Chinese companies such as Bitmain is investing money in crypto farms outside of China.
In this situation, it is hard to understand the position of authorities when it comes to cryptocurrencies.
China’s President and the digital currency market
Last week, China’s President Xi Jinping made a statement which helped to learn more about his position regarding the cryptocurrencies. He said that China should not only embrace this technology but also should play a more important role when it comes to forming global standards.
Xi Jinping’s speech instantly increased the interest in digital currencies. Some of the top universities in China even decided to offer courses about blockchain. This news is just one of the examples of how the Communist Party and its leadership is affecting the local crypto community.