China’s central financial institution, the People’s Financial Institution, describes its success in suppressing bitcoin and online lending.
A WeChat filing outlines the way it has wisely managed Chinese President Xi Jinping over the past five years, an effort that has translated into “complete cleansing and correcting the monetary order.”
Among its achievements in this area, the financial institution claims it continues to crack down on home-country assumptions in the buying and selling of digital foreign currencies. These efforts have resulted in “a significant global drop in the number of bitcoin buying and selling within China.”
It is unclear whether the lack of cryptocurrency mining is the product of machine translation or a deliberately chosen phrase.
However, the phrase “Efficiently complete the special rectification of the online financial crisis and close nearly 5,000 P2P online lending institutions” has a transparent meaning. China doesn’t like P2P lending because it’s considered too cumbersome to control, which in turn poses a threat to the economic system. This is the main reason why Beijing canceled the IPO of Ant Group, the Alibaba-owned financial company that enables peer-to-peer online lending.
Since then, the Xi Jinping-led authorities have placed great emphasis on bringing all of China’s big tech companies under management so that their innovation and development serve the country fairly, rather than being the focus of market energy. Beijing may be eager to ensure that prominent chief executives do not gain fame and status comparable to those of high-ranking officials — such as Xi Jinping.
The time contributed by the financial institution may be as necessary as its content. It predates the start of the 20th National Congress of the Chinese Communist Party on October 16.
At that time, Xi Jinping is expected to be re-appointed for an unprecedented third time as Chinese president. No Chinese state leader — not even Mao Zedong — has served longer than Xi Jinping, and if appointed a third time, he could lead the country five years longer than any of his predecessors.
The bench submission then alerted the nation to Xi’s observation document and the validity of his insurance policy.
However, the filing also gave an optimistic outlook: In the last week alone, authorities reported the arrest of 93 people accused of laundering $5.5 billion using digital foreign funds.
The group’s actions reflect the fact that China has been trying to ban the mining and use of cryptocurrencies for years, but it is generally deemed necessary to reiterate the ban. Even after years of decree making it clear that cryptocurrencies are not welcome, Chinese courts still rule that cryptocurrency cash can be considered an asset.
Cryptocurrencies may then be officially brought under control in China, but the reality appears to be quite different. In any case, Xi Jinping is more likely to be re-elected. ®
China’s central financial institution declares victory over Bitcoin • The Register