China’s moves towards Virtual Currencies History and current situation

Created by an unknown programmer almost a decade ago as an alternative to standard currencies, virtual currencies or Bitcoin has been a subject of discussion for many. There has been much said about China suppressing and shutting down the trade of Bitcoin also referred to as “virtual currencies” by the government of Beijing. BTC China- the world’s second-largest Bitcoin exchange company declared after Chinese governments prohibited a pledge drive for new digital currencies. This announcement is the first known in China and makes way for a threat to other exchanges being shut down for Bitcoin trade in the future. But it became more serious when there was an announcement about putting a stop to one-on-one trading services.

This proposal by the Chinese is one of the harshest any government has done to control Bitcoin. China has gone digital with its financial division faster than any other country and governments support Beijing. In 2009, the central bank prohibited the use of tokens which were priced for billions of dollars created in China’s huge online gaming systems for real-world assets. This has caused doubt since China’s restrictions on Bitcoin has damaged global prices and domestic trades. For now, China remains the center for Bitcoin mining. The goal of China’s virtual currency repression is to ensure that every piece of money can be tracked down. Still, many worry about how far this will go and how China could be shutting itself out of a growing global market.

Although China’s Bitcoin trading has gone down, the country remains a creator of a major part of new Bitcoin through what is being called “mining”, process. Chinese miners play a huge part in the global mining network and play an important role in the conservation of the Bitcoin ledger.

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