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Chinese State-Run Media Warns About Bitcoin’s Price Falling To Zero As Regulators Issue Fresh Crypto Warning

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Chinese State-Run Media Warns About Bitcoin’s Price Falling To Zero As Regulators Issue Fresh Crypto Warning

A Chinese state-run newspaper has published an article warning about bitcoin’s price falling to zero amid the crypto market sell-off. Meanwhile, financial regulators in Shenzhen have issued a new warning about cryptocurrency.

State-Run Newspaper Warns About Bitcoin Becoming Worthless

China’s state-run newspaper Economic Daily published an article warning about bitcoin Wednesday, according to SCMP. The nationwide newspaper is directly under the control of the Central Committee of the ruling Chinese Communist Party.

The article warned that investors should beware of the risk of bitcoin prices “heading to zero” amid the recent crypto market sell-off.

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“Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,” the newspaper details, adding:

In the future, once investors’ confidence collapses or when sovereign countries declare bitcoin illegal, it will return to its original value, which is utterly worthless.

The newspaper details that the lack of regulation in Western countries, such as the United States, helped create a highly-leveraged market that is “full of manipulation and pseudo-technology concepts.” The article describes it as an “important external factor” contributing to bitcoin’s volatility.

The warning from the state-run media reflects Beijing’s firm stance against cryptocurrency and related activities that the government has outlawed.

New Warning About Crypto by Chinese Regulators

On Tuesday, the Financial Regulatory Bureau of Shenzhen, the Shenzhen Central Sub-branch of the People’s Bank of China, and the Shenzhen Development and Reform Commission also jointly issued a warning that investors should be vigilant of illegal financial activities relating to crypto and how to avoid being scammed.

The notice states that virtual currency trading and speculation “seriously endanger” the safety of people’s property and breed gambling, illegal fundraising, fraud, pyramid schemes, money laundering, and other illegal and criminal activities. It also claims that they disrupt the country’s economic and financial order.

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The financial authorities cited a statement published in September last year by China’s central bank, the People’s Bank of China (PBOC), and 10 ministries and commissions declaring that virtual currency is not legal tender and related activities are illegal financial activities.

What do you think about the state-run newspaper publishing a warning about bitcoin’s price sinking to zero and the Chinese regulators warning about illegal crypto activities? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, lev radin

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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1788

Analysts: BRICS Currency Meant To Rival USD, Trump Warns Of Depression As Kiyosaki Predicts Bond Crash, Waits To Buy Bitcoin — Bitcoin.com News Week In Review

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Analysts: BRICS Currency Meant To Rival USD, Trump Warns Of Depression As Kiyosaki Predicts Bond Crash, Waits To Buy Bitcoin — Bitcoin.com News Week In Review

BRICS nations have revealed they’re “creating an international reserve currency” analysts believe is meant to challenge the U.S. dollar and the International Monetary Fund’s Special Drawing Rights (SDR) currency. Further, Donald Trump warns of a depression in the U.S., Rich Dad Poor Dad author Robert Kiyosaki says we’re in for the “biggest bond crash” in over 200 years, and FTX CEO Sam Bankman-Fried says he’s ready to deploy “hundreds of millions beyond what we have thus far” to help digital currency companies. Buckle up for another Bitcoin.com News Week in Review.

Targeting the US Dollar’s Hegemony: Russia, China, and BRICS Nations Plan to Craft a New International Reserve Currency

While inflation data in Europe and the U.S. has risen significantly higher last month, Russia and members of the BRICS countries revealed leaders in the five major emerging economies are in the midst of “creating an international reserve currency.” Analysts believe the BRICS reserve currency is meant to rival the U.S. dollar and the International Monetary Fund’s (IMF) Special Drawing Rights (SDRs) currency.

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Donald Trump Warns US Economy Is Facing ‘Much Bigger Problem Than Recession’ — ‘We’ll Have a Depression’

Former President Donald Trump has warned that the U.S. economy is facing “a much bigger problem than recession.” Noting that “We’ll have a depression,” he stressed: “We have to get this country going, or we’re going to have a serious problem.”

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FTX to Help Voyager Customers, CEO Says Firm Willing to Deploy ‘Hundreds of Millions’ to Help Crypto Industry

The founder and CEO of the leading exchange FTX, Sam Bankman-Fried, has offered to give early liquidity to Voyager Digital’s customers, according to an announcement FTX published on July 22. Furthermore, Bankman-Fried discussed the crypto industry with CNBC in an exclusive interview, and noted that he was willing to deploy “hundreds of millions beyond what we have thus far” to help digital currency companies affected by the crypto market downturn.

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Robert Kiyosaki Warns of ‘Biggest Bond Crash Since 1788’ — Waiting to Buy Bitcoin at Lower Price

The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, has warned of the “biggest bond crash since 1788.” He stressed that the “real problem” is in the bond market, which is “40 times larger” than the stock market. He is waiting for the price of bitcoin to fall further to buy some.

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1788, Bitcoin Kiyosaki, Bond Crash, brics, China, Depression, ftx, Kiyosaki, reserve currency, Russia, Sam Bankman-Fried, Trump, US dollar hegemony, USD hegemony, voyager, Voyager Digital

Do you think the BRICS nations will succeed in creating a new international reserve currency? If so, will it challenge U.S. dollar dominance? Be sure to let us know in the comments section below.

Bitcoin.com

Since 2015, Bitcoin.com has been a global leader in introducing newcomers to crypto. Featuring accessible educational materials, timely and objective news, and intuitive self-custodial products, we make it easy for anyone to buy, spend, trade, invest, earn, and stay up-to-date on cryptocurrency and the future of finance.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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CBDCs

China to respect privacy of digital yuan users, eyes more adoption

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China to respect privacy of digital yuan users, eyes more adoption

China to respect privacy of digital yuan users, eyes more adoption Oluwapelumi Adejumo · 2 hours ago · 2 min read

China is doubling efforts to increase digital yuan adoption and usage by creating tailor-made products for the currency.

2 min read

Updated: July 25, 2022 at 11:58 am

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Cover art/illustration via CryptoSlate

A senior Chinese central bank official, Mu Changchun, said the country will respect digital yuan users’ privacy and protect their personal information, Reuters reported on July 25.

According to Changchun, the digital yuan has a limited anonymity feature that allows for reasonable anonymous transactions.

He said using the digital yuan “prevents and combats illegal activities including money laundering, terrorist financing, and tax evasion.”

The bank chief also reiterated that digital yuan users could use the currency to purchase anything. Changchun said:

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Banknotes and coins can buy gold and convert foreign currency, so does the e-CNY.

Meanwhile, the privacy statement is surprising, considering China is believed to be developing its digital yuan to ensure it can monitor the financial activities of its citizens. This fear prompted three U.S. senators to propose a draft bill that bans digital yuan use by U.S. app stores.

Crypto enthusiasts generally distrust central bank digital currency (CBDC) projects because it allows the government to carry out financial surveillance.

China eyes more adoption

Chinese banks are doubling efforts to increase digital yuan adoption and usage by creating tailor-made products for the currency, Global Times reported.

Several local Chinese bank representatives at the 5th Digital China Summit in Fuzhou unveiled several e-currency products and services at the event.

According to a staff of China Construction Bank (CCB), knowledge about the digital yuan has risen compared to previous years.

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CCB launched a digital yuan mobile application and presented a physical wallet for the digital currency at the event. Users can make payments with the card when it is finally available.

Other banks with branches in Fujian, including the Agricultural Bank of China (ABC), also launched initiatives to promote the use of digital yuan. An ABC employee said the bank has cooperated with local supermarkets to increase digital yuan usage.

Tech firms form digital yuan alliance

A group of tech firms and banks, including Huawei Technologies Co, Newland Digital Tech, and several state-owned banks, formed a Digital RMB Industry Alliance on July 24.

The first chairman of the alliance is Wang Jing of Newland Digital Tech.

Its goal is to promote the digital yuan’s development, share knowledge and technology, and develop innovative solutions.

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Alibaba

Chinese Tech Giant Tencent To Shut Down NFT Platform Amid Trading Restrictions

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Chinese Tech Giant Tencent To Shut Down NFT Platform Amid Trading Restrictions

China’s Tencent Holdings plans to shut down its non-fungible token (NFT) platform Huanhe only a year after its launch. The social media giant has reportedly made the decision because of the strict ban on the resale of NFTs imposed by the authorities in Beijing.

Huanhe to Close Down a Year After Launch as China Curbs NFT reselling

Shenzhen-headquartered technology conglomerate Tencent is preparing to shut down its NFT platform as early as this week, according to a report by Chinese media outlet Jiemian, quoted by the South China Morning Post. The move comes amid restrictions on the secondary trading of NFTs in the People’s Republic which are said to have hurt the platform’s business potential.

Jiemian is citing unidentified sources from Tencent but the company has refrained from providing an official comment on the matter. Huanhe, which issues and distributes blockchain-based digital collectibles, was launched just a year ago.

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All NFTs on the app are already marked as “sold out,” although users can still visit augmented reality art exhibitions. Another report quoting a different Tencent source, from the state-owned media Yicai Global, reveals that trading halted in early July in anticipation of a crackdown.

Huanhe was developed by Tencent’s Platform and Content Group (PCG), which was hit hard by lay-offs earlier this year. If the NFT unit terminates activities, this would mark a major retreat by Tencent from the market of digital collectibles, the SCMP notes.

In June, Tencent’s social media app Wechat announced its intentions to prohibit public accounts facilitating secondary trading or offering guidance for non-fungible tokens. A little later, the Tencent News app stopped selling NFTs.

Other Chinese tech giants, such as Alibaba Group Holding, have been careful with their involvement with NFTs, with Chinese platforms usually substituting the NFT label with the term “digital collectibles,” which isn’t necessarily associated with cryptocurrencies.

The government in the mainland has been going after crypto-related activities, including investment, trading, and mining. It has highlighted concerns that speculation could lead to bubbles in the digital assets market, while promoting the state-issued digital yuan. According to existing regulations, the tokens can be purchased only with Chinese fiat and never resold.

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Tags in this story

Alibaba, ban, China, chinese, Crackdown, Digital Collectibles, Huanhe, nft, nft platform, NFTs, Non-fungible tokens, restrictions, Selling, tencent, Tokens, trading, WeChat

Do you expect other NFT platforms in China to shut down in the near future? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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