The Chinese official legal tender, the Yuan, has ridiculously fallen to about 1% of the total Bitcoin trading having peaked at 90% of the total trading volume, despite the fact that the currency is one of the most important fiat currencies around the world. This, however, appears to be owing to the imposition of ban on the market last year.
The “good old days” of Yuan topping the list of currencies traded against Bitcoin is abruptly over. The Chinese government in a bid to regulate and regularize market has been stringent on the cryptocurrency sector which consequently affects traders, companies and more importantly, the cryptocurrency exchange. This moment can be safely regarded as the “last days of the Yuan” on the bitcoin trading volume.
A prominent blockchain analyst at Zhongchao Credit Card Industry Development Company has described this as:
“The timely moves by regulators effectively fended off the impact of sharp ups and downs in virtual currency prices and led the global regulatory trend.”
The ban, however adverse its effect might be on bitcoin (BTC), has achieved its goal. The People’s Bank of China stated that the nation had ensured a zero-risk exist for 88 different virtual currency exchange. Also, over 80 left the country since last year.
China’s Stance on Blockchain Technology
It is apparent that though the Chinese government frowns and plays safe with the Bitcoin, the case is slightly different from that of the blockchain technology as a whole. This is evident as several companies in China seem to exploit the “unfair advantage” of the distributed ledger technology (DLT), it seems the government and particularly the president Xi Jinping, has endorsed this innovation. He reportedly endorsed the technology saying:
“Since entering the 21st century, global science and technological innovation has entered into an unprecedented period of intensive activity. A new round of scientific and industrial revolution is reconstructing the global innovation map and reshaping the global economic structure.”
Perhaps in years to come, the current embargo might be lifted, but at the moment, the ban seems to be in force has been a significant deterrence for the Chinese currency trading against bitcoin.