China is in a difficult position with Bitcoin. While the country has been attempting to regulate the digital currency, it has also been trying to promote its own alternative, called "national virtual currency."

Banning Bitcoin could have several negative effects for China. For one, it could stifle innovation and growth in the technology sector, as well as deprive the country of potential tax revenue. Additionally, it could drive cryptocurrency traders and investors elsewhere, potentially hurting China's economy. Finally, it could make the country more susceptible to cyberattacks, as Bitcoin is often used to finance such attacks.