They've already banned all crypto exchanges in country,now they are working on the methods how to prevent Chinese citizens to use international exchanges.Only thing working in China regarding cryptocurrency is mining,they allow that just because it make huge profit for them.Money that comes to country is not a problem, but uncontrollable cash outflow through cryptocurrency is unacceptable.
Well, I have to confess I never understood that thing. Could anyone please explain to me in layman terms what this "uncontrollable cash outflow" means in practice? I understand when people buy gold and try to move it across the border because it physically leaves the country. But bitcoin is sort of transcendental in the sense it doesn't recognize borders anyway. So it kinda doesn't need to be moved anywhere since it's already everywhere, Jinping or no Jinping. Where's the catch here?
I think the explanation is very simple,at least for me.When some Chinese wants to move money (CNY) from China to another country they simple buy
BTC or some other cryptocurrency,it is easy,safe and effective way of sending money without government knows where and how much money you sending.Since they can not control such transactions only way to stop people to convert CYN in crypto was to ban exchanges.If average Chinese can not buy
BTC today,this means government has succeeded in its intention.
Sorry, but this is not an explanation that I'm looking for. I heard it explained this way many times already, and it sucks. Okay, he buys some cryptocurrency with yuan and so what? The money is not moving anywhere, it just changes hands, from the buyer to the seller. The financial capital represented by the official currency still remains in the country, so no purchasing power is lost (or acquired, for the record) which would count as "uncontrollable cash outflow". Where's cash here?
I don't get that thing. Anyone else want to explain it?