China prohibits the use of bitcoin and other cryptocurrencies in transactions in the country – Prime Time Zone

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Beijing claims digital assets were being used in fraud and speculation

Pierre Borthiry / UnsplashChinese government ban brought down cryptocurrency prices

the government of China prohibited, this Friday, the 24th, the use of cryptocurrencies for financial transactions in the country. In a statement, the People’s Bank of China (PBOF) stated that digital assets were being used in a series of frauds and speculations, and that they had an impact on economic and financial orders. “[A decisão] it is aimed at implementing the philosophy of people-centered development and implementing the necessary requirement for the country’s global security concept,” Beijing informed. The decision brought down the price of currencies on the market. Around 11:40 am, the bitcoin operated with a 3.6% decline, at approximately US$ 42.5 thousand. The cryptocurrency dropped 5%, worth US$ 40 thousand. The movement represents the Chinese government’s intensification against the use of cryptocurrencies. Since the beginning of the year, Beijing has changed a series of measures to make transactions in digital assets more difficult, justifying the risks to the financial system.

In the opposite direction, the government of The Savior adopted, in early September, bitcoin as National coin. According to President Nayib Bukele, the adoption will help the population to save US$ 600 million a year in remittances abroad. He also highlighted that even people who do not have a bank account will be able to access financial services. However, even with the positive justifications, the measure has faced great resistance from the population, who mobilized in protests against the change. Salvadorans claim that not everyone has access to the internet and that bitcoin is a very volatile currency. With the novelty in the country, other nations, such as Panama, Cuba and Ukraine, have also expressed interest in adopting the digital currency as official money, but the subject is controversial and divided opinions.