Image Source: The Financial Express
By: Michael Argenta
September 26, 2021
A major economy versus cryptocurrency. While China is known for censoring media, the world’s most populated nation is now deeming cryptocurrency transactions illegal. On Friday, September 24, the People’s Bank of China banned transactions to protect national security and social stability. In turn, this impacted the crypto market and lowered prices around the world.
The most well-known cryptocurrency, Bitcoin (BTC), fell more than 8% after the announcement, fetching $41,370 per BTC. As a digital currency, Bitcoin is decentralized from a government and traded without the need for intermediaries. A government like China does not like losing control, especially in a major sector of the nation, like the economy. In recent years, China banned trading cryptocurrency within its borders and had further restricted trading and mining. However, now, deeming it illegal completely restricts involvement in cryptocurrency, leaving opportunities for other miners around the world.
Before the ban, China had more crypto activity than the entire world due to a large population, advanced technology, and cheap electricity for mining. While other countries will be able to pick up where China left off or increase their involvement in the crypto market, losing China will likely leave a lasting impact for some time. In addition, it will be interesting to see if other nations take action like China and ban or further regulate cryptocurrencies.