News has been making the rounds, that the Chinese administration will soon have a crypto of its own. So how should we look at this crypto, will it be welcomed by the crypto community?
We all know that China can do what it wants to, there is no stopping China. The Chinese administration has always made sure that, it can keep a close look at what people in the nation are doing. This is something that would have an impact on the Chinese crypto plans.
Cryptos are all about anonymity they represent an independent existence, not governed by any person, government or authority. Putting that in simple terms it means that, cryptos do not provide room for ‘interference’.
There is literally nothing that the Chinese do that, the government does not keep a track on. So will China allow crypto transactions to happen in absolute anonymity. Will the crypto community be willing to accept a significant intrusion into its privacy.
Nations across the globe have been busy formulating laws and regulations to govern crypto trade but, the degree of control is very specific and rather limited. Emphasis is given to eliminating issues like terror funding, money laundering etc. Governments are also looking for ways to ensure that, taxes are paid for profits made on crypto transactions.
While China would surely look to have a much stricter control over its crypto, it remains to be seen how possible this would be. Crypto exchanges across the globe that list the Chinese crypto, would be unwilling to part with too much information. Exchanges that are willing to go the extra mile to share info with China, would need to inform their clients about their decision. This would dampen trader sentiment and negatively impact the exchange.
Given the above scenario it is likely that, the Chinese crypto would be confined to the country. Internal consumption within the country is huge and the crypto could get an impressive level of demand. And if this is the course chartered out by China for its very own crypto, the impact on global crypto markets would be limited.
The crypto world is currently abuzz with the Facebook crypto, though no one is really sure if and when it would happen. Rumor mills are managing to keep the interest alive.