by Bianca Wright
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Specifically, it asked the institutions to assist the central bank in discouraging Chinese people from trading Bitcoin on exchanges, both local and international, and over-the-counter markets. The letter’s wording sometimes veers away from being formal and official and into a romantic utopian vision.
The PBOC’s public pledge to thoroughly monitor people both online and offline in an attempt to “increase the accuracy and efficiency of detecting and finding virtual currency transaction hype activities” is perhaps the scariest thing for Bitcoiners. Further, the statement claims to have developed sophisticated technology for the complete real-time monitoring of blockchain transactions and information relating to freshly minted currencies, their transactions, and trade, among other things. China has been attempting to outlaw Bitcoin for many years. The Chinese government tried to ban the use of bitcoin in the nation for the first time in 2013, just a few years after the cryptocurrency’s inception. Since then, the value of bitcoin in terms of dollars has skyrocketed.
Bitcoin cannot be outlawed in China, even though the Chinese Communist Party (CCP) has not grasped the concept yet. Non-only because Bitcoin is a peer-to-peer, dispersed network instead of centralised, easily-controlled networks. Because of the game-theoretic nature of Bitcoin adoption, it is a fool’s errand to try to get it to spread. Similarly, if one nation prohibits Bitcoin while another welcomes it, money and people would migrate to the country where they will treat it the kindest.
So, what did China think when it chose the other route? At the heart of the solution is what is arguably Bitcoin’s most important value proposition: individual empowerment manifested in the form of freedom and self-determination. Unsurprisingly, both of these characteristics are despised by a communist government. Naturally, China’s policies directly reflect the communist regime’s capacity to maintain control over the country and exercise broad influence and control over its citizens. Everyone and everything that poses a danger to these talents have been and will continue to be repressed.
For years, China’s “Great Firewall” has prevented Chinese citizens from accessing many Western websites and platforms, including those operated by Facebook, Google, and other big technology corporations. The communist-ruled government’s severe censorship placed on the Chinese people has just one goal: to deny them access to information and compel them to obey the government.
Bitcoin is a tool that gives individuals more power. Everyone on the peer-to-peer network is treated equally, regardless of their wealth, power, social position, race, religion, or cultural background. Every person who uses it has the same sound, censorship-resistant, permissionless monetary system since it is distributed worldwide. Bitcoin enables individuals to keep and trade with sound money with anyone, everywhere, and at any time via a digital signature.
Similar to how previous restrictions on Facebook and Google did not hurt those companies, news that China has banned Bitcoin should not and will not break the cryptocurrency. It serves to reinforce it. Unless Bitcoin were unsuitable for use as money, either as a store of value or as a means of exchange, no government would go to the effort of prohibiting it from being used as currency. The fact that China has resorted to such drastic steps to suppress Bitcoin and bitcoin mining demonstrates how robust this technology is and how terrified the CCP is of what it has the potential to do.
Bitcoin is a weapon for fighting tyranny, and as such, it poses a danger to any government that wants a high degree of control over their people and citizens’ funds. As a result of its ability to regain its rights and freedom, Bitcoin is the greatest nightmare of all authoritarian regimes. It should come as no surprise that China has been attempting to prohibit it for quite some time. But, unfortunately for them, they will not be successful this time, and Bitcoin will continue to exist.
