https://sg.finance.yahoo.com/news/pboc-official-says-chinas-centralised-virtual-currency-trade-055307878--business.html
China wants to wipe out cryptocurrency from the mainland. China is restricting electricity, land use and so on to ban cryptocurrency.
We support China's move because cryptocurrency is a derivative that can disrupt an economy in a very bad way and it defies economic sense.
A government manages an economy in 3 basic forms: Monetary, Fiscal & Structural policies. However, it is already difficult to manage an economy with these 3-pronged approaches and recessions happen periodically.
As cryptocurrency will affect the monetary policy effectiveness, it is wiser for the government to nip the cryptocurrency in the bud before it explodes and renders the monetary policy ineffective. The government will find it almost impossible to manage an economy with only 2 tools instead of 3.
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2 comments:
https://sg-stock.blogspot.sg/2017/09/china-has-made-decision-to-shut-down.html
https://sg-stock.blogspot.sg/2017/10/bitcoin-soars-to-all-time-high.html
Where are the fanatics now that said the bitcoin ban was just temporary?
From what I see now, China's crackdown on cryptocurrency is real and doesn't look temporary.
https://sg.finance.yahoo.com/news/china-step-cryptocurrency-crackdown-080052988--finance.html
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