Most people worldwide believe that the Chinese government has been pretty enthusiastic about the crypto concept, and therefore, it has decided to launch its own central bank digital currency. However, we can predict that things are not the same. The Chinese government does not always agree with the rest of the nations, and therefore, they do something that is only essential for the harmony of their own country.
One of the significant steps that have been taken by the Chinese government recently in 2021 is the launch of the Digital yuan. It is a digital representation of the Fiat currency of China, and it has meant a lot for the other cryptocurrencies revolving all over the world. It led to the ban of bitcoin in the country, and it has had an impact worldwide.
Another crucial thing that we must address every time we discuss the Digital yuan is that the Chinese government does not simply take any actions. They have a plan behind everything. The same has also been done when the country launches the digital Yuan. They want to achieve some aim, so they have launched this digital currency.
Therefore, you need to understand the impact of this new digital coin of the Chinese government on the other cryptocurrencies. Even though it might not significantly impact all the cryptocurrencies, a few have suffered because of the digital Yuan’s inception.
Table of Contents
Unchanged!
We are required to understand many things about the cryptocurrency space, and one among them is that the inception of any new coin will not change the status. Yes, even though the Chinese government has launched the digital Chinese Yuan to suppress the action of other cryptocurrencies, it has had no significant impact.
However, the country has been looking forward to properly creating its digital coin mechanism to support the whole nation. At the global level, it does not have much impact, and therefore, it does not have any status change for cryptocurrencies anywhere in the world.
She was already banned!
A critical point that we are supposed to notice about the inception of the Digital Chinese Yuan is that it has already led to the ban of bitcoin in the country. It is not only bitcoin that is banned within China’s geographical boundaries but apart from that, other cryptocurrencies and mining operations are also shut down.
The Chinese government started to shut down the cryptocurrency mining operations back in 2021 April, and it ended with a complete ban on mining and crypto trading. Moreover, the Chinese people are not even allowed to invest in cryptocurrencies, which the government of China does not regulate. More importantly, it was a bitcoin that the Chinese government aimed to target because it profoundly impacted the economy.
Aim of china
To some extent, the aim of China has also been one of the most critical areas affected by the help of this new digital Chinese Yuan. A primary reason the Chinese government decided to implement the strategy of banning cryptocurrencies and launching its digital currency is to fulfil its aim.
It wants to make the country’s global dominance worldwide, and therefore, it has taken one crucial step: the inception of its own digital Chinese Yuan.
Effects on global crypto society!
In the initial stages, when the Chinese government decided to ban bitcoin in the country, it had a few impacts on the global cryptocurrency society. The hash rate was mainly affected by the steps of the Chinese government, but as the tiDigital-Yuanme passed, things got normal. Things were quite difficult for the other cryptocurrencies to survive in the initial stages, especially bitcoin. In the end, everything got normal, and bitcoin again started to flourish.
Last words!
Regardless of what the Chinese government does to ban the moment of cryptocurrencies, it will only have a marginal impact and a short duration of time. As cryptocurrencies work on the demand and supply mechanism, they definitely will balance in the future.
No government in the world is now in control of cryptocurrencies. The only medium to shut down the complete moment of cryptocurrencies worldwide is for all the nations to come together and ban digital tokens completely. However, it seems like a scenario which is next to impossible.
