The position of China in relation to the crypto-currency is even more vague this week, after a government official has suggested that Beijing was planning to launch its own digital currency. The repression of China has had an impact on the value of Bitcoin.
In recent times, the chinese government has analyzed the market of crypto-currencies and provides guidelines to regulate them. Today, it wants to create its own virtual currency, which will be fully managed by the State.
A crypto-currency to stabilize the Yuan
Yao Qian, director of the Institute for research on digital currencies, has presented a clear vision of the digital currency managed by the State at a meeting organized by the international Union of the professionals of the telecommunication. The news agency Yincai has reported that Yao had launched a crypto-currency issued by the State to stabilize china’s currency. It has suffered several times a devaluation since 2015.
In the past two years, the instability of the Yuan has been the main reason for the adoption of Bitcoin in China. Yao Qian said that the value of crypto-currencies such as Bitcoin comes mainly from speculation in the market. It is inconceivable to convert it back to a real currency, he added. According to the director of the Institute, the fact to regulate this virtual currency will create tangible value, thus favouring the stability of the currency.
Increase in the price of Bitcoin after the reaction of China
The price of Bitcoin has risen again, because of speculation, according to which China could reduce its repression against the crypto-currency. The exchange rate of BTC/USD has reached 5 400 dollars.
The Chinese position on the crypto-currencies greatly influence the evolution of the prices of these digital currencies. The decision of Beijing to ban Bitcoin last month, has contributed to the decline of its price.
Source : Hacked