An In-Depth Analysis of The State of Cryptocurrency in China

Abstract

Cryptocurrency is a space that has grown by leaps and bounds since the launch of Bitcoin in 2009. Similarly, China has experienced a meteoric rise in prosperity and global influence since 1978. This paper will trace the evolution of the Chinese government’s position towards cryptocurrencies. Beginning in 2013 the CCP released a notice outlining its concerns about the decentralized and anonymous nature of Bitcoin. Since 2013, the crypto market has matured a lot and the dangers enumerated by the CCP in 2013 have only grown more pronounced. Concurrently, under Xi the CCP has shifted towards a stricter authoritarianism with little tolerance for not being in control. The CCP’s emphasis on central control and its desire to financialize Chinese society through a safe and methodical process ultimately necessitated that they outlaw cryptocurrency trading in China. Despite being banned in China, the cryptocurrency market has continued growing and maturing and is now poised to become a world reserve currency.