In an opinion piece published in Money News, former director of the United States Mint Edmund Moy discussed China’s recent “dissing” of bitcoin.
Moy is, of course, referring to the Chinese government dropping the ban hammer on third-party payment companies doing business with bitcoin exchanges — which has put a damper on the growth of bitcoin in the communist country.
“The Chinese government needed to clamp down on BTC before it gained enough momentum to threaten the government’s monopoly on currency,” Moy says. “For those in power, there is no current conceivable need to decentralize something as important as their control over currency and cede it to BTC, which they cannot control.”
Moy also makes the point that the semi-anonymity behind bitcoin may have been a means for some Chinese citizens to transfer their wealth outside of the country — a huge problem, obviously.
“China is afraid of BTC because of its real potential to disrupt its plan for economic supremacy,” Moy continues. “Consequently, China’s ban actually validates cryptocurrencies and their transformational possibilities.”
Read the opinion piece on Money News.