China Bitcoin Crackdown Will Likely Continue As It Seeks to Establish the Digital Yuan, ITIF Says

September 24, 2021

WASHINGTON—Following China’s top regulators on Friday banning crypto trading and mining, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following statement from ITIF’s Vice President Daniel Castro:

China has every reason to maintain tight control over its monetary policy, especially as it seeks to establish a digital yuan. Bitcoin presents a threat to a centrally controlled national digital currency because it is decentralized and outside the control of the government. 

Given the longstanding attempts to control Chinese access to the Internet with the “Great Firewall of China,” it’s not surprising to see the government now expanding its control to include crypto. 

Moreover, China is certainly within its rights to ban speculation on crypto markets. However, this step does risk further isolating China’s digital economy from the rest of the world, ultimately leading to less stability and cooperation.

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China Bitcoin Crackdown Will Likely Continue As It Seeks to Establish the Digital Yuan, ITIF Says