China’s new law splits the Crypto community
- China's congress has recently decided to pass a new cryptocurrency law which might lead to the adoption of blockchain.
- The law is seemingly positive for the crypto and blockchain industries, but despite this, many see it as a potential problem.
- Instead of bringing modernization and technological evolution, the technology could be misused for achieving greater control.
China has recently made a number of announcements that seem to be quite positive for the crypto/blockchain industry, at least at first glance. The country’s president praised blockchain technology, while the congress even brought a new law that could lead to the adoption of this tech.
However, the new stance towards blockchain has had a somewhat controversial impact on the crypto community. While many have applauded the openness to the new technologies, others fear that it could be misused by the government.
China’s attempts to monitor its citizens and control what they can and can’t do and reach online is well-known around the world. From everything that was seen so far, it seems like the country is constantly after increasing its control over its population.
Until a while ago, there were rumors that the country might even launch its own cryptocurrency, despite banning crypto exchanges and trading. Soon enough, the rumors turned out to be true, and the new cryptography law seems to confirm that the country is, indeed, preparing for such a move.
The new law will take effect on January 1st, 2020. Reports also claim that the draft proposal has named the current regulatory system unsuitable for the industry, meaning that new laws and regulations are needed.
Regardless, the community seems to be rather divided when it comes to what to make of this new development. Binance’s CEO, Changpeng Zhao, for example, approves of the move, stating that it is a good thing for the crypto industry. He also believes that the move may have been inspired by Facebook’s efforts to launch Libra.
This is big!
The country with the biggest population on Earth, and one of the highest GDP growth in recent years, just took a big step in the right direction.
What is your country gonna do? Follow or get left behind? https://t.co/yoOVlOMuL9
— CZ ???? BNB (@cz_binance) October 26, 2019
On the other hand, the host of ‘What Bitcoin Did’ podcast, Peter McCormack, disagrees. He and many others fear that China’s move might lead to the centralization of blockchain and crypto, and lead to further oppression and censorship.
https://twitter.com/PeterMcCormack/status/1188887886185275392
The news from China had significantly impacted crypto prices, launching many of the coins up by a considerable percentage. However, it still remains questionable whether or not this will be a good thing for the crypto industry in the long run, or not.
