Chinese authorities claim beating Bitcoin as yuan sinks to 2008 low

YEREVAN (CoinChapter.com) – After recently busting a crypto-related money laundering ring, the Chinese government trumpeted success in suppressing Bitcoin and online lending. In detail, on Sep 26, the People’s Bank of China, the country’s central bank, declared it “comprehensively cleaned up and rectified the financial order.”

China cracks down on crypto. Again.

The institution’s WeChat post also stated that it would further promote the “special rectification” of “pseudo-gold exchanges” and eliminate the regulatory vacuum. Also, the bank asserted it cracked down on illegal fund-raising. In the past five years, a total of 25,000 cases of illegal fund-raising have been “investigated and dealt with.”

China’s domestic bitcoin trading volume has dropped significantly in the world. The clean-up and rectification of financial asset trading venues have achieved positive results, and the disorderly expansion and savage growth momentum have been effectively curbed.

commented the post.

Furthermore, President Xi Jinping has made a case of bringing all of China’s big tech players to heel. In doing so, their innovation and growth would “serve the nation” and not result in concentrations of market power. Meanwhile, the government’s ‘successful battle’ against alternate financial solutions couldn’t have come at a more opportune time.

In detail, it came ahead of the kick-off of the 20th National Congress of the Chinese Communist Party on Oct 16. Experts believe that Xi Jinping will be reelected for an unprecedented third term and will potentially lead the nation for five years longer than any predecessor.

Also read: Bank of England announces £65B QE — Crypto market steady

Chinese Yuan tumbles 11% since the March

While the government rages war on Bitcoin, the Chinese Yuan (CNY) fell dramatically against the US dollar since Aug 15, bringing the total losses since March to 11%.

Before attempting to stabilize on Thursday, the currency fell to its record low since the 2008 financial crisis and stood at 0.13 against the dollar on Sep 28. The tumble led to the assumption that the People’s Bank would slow the pace of monetary easing to avoid adding further pressure on the currency.

As CoinChapter reported earlier, experts already expect China to lag behind its neighbors in the current year. Additionally, a Bloomberg survey expects gross domestic product growth to slow to just 3.4% this year. If the estimations are correct, 2022 will exhibit would be the slowest pace in more than four decades, excluding 2020.

Zhang Zhiwei, chief economist at Pinpoint Asset Management Ltd. agreed with the outlook.

The room for further monetary policy easing, particularly in terms of interest rate cuts, is quite limited,” he said. The effectiveness of monetary easing is also questionable.

stated the expert.

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