Gordan Chang, Author of The Coming Collapse of China, is not optimistic about a loosening of legislation surrounding Bitcoin following the 19th National Party Congress. Reportedly, have long circulated that with the change in leadership will come a more liberal attitude towards digital currencies.
Recently, Chang expressed his pessimism. He cited Bitcoin’s anti-authoritarianism and uttered doubt that a monocratic state would allow its unrestricted use. The Chinese economics and author highlight Bitcoin and crypto’s use in evading capital controls. However, the citizens easily can expatriate money is “making a mockery” of lawmakers. Thus, for Change was so inspired.
Furthermore, he even cited the proposal by the PBoC to announce their own cryptocurrency. Since he observed the obvious conflict of interest between a digital currency and central banks:
“I think fascinating things are comments from the People’s Bank of China, about China developing its own sovereign digital currency, sort of as a replacement for Bitcoin. This is going to be fascinating to watch because the Chinese central bank is going to want to have control.The reason why these cryptos are so popular is that they take control away from the government and give it to the people. Since this is going to a struggle”.
The author’s argument remains in the fact that the current Chinese leadership has employed major control over the economy and markets. According to Chang, allowing the massive use of cryptocurrency runs contrary to the previous actions by the government and therefore he doubts any large U-turn in policy would occur.
“We have seen this so far, there has been the prohibition on ICOs and the closing of exchanges. Since, everyone is thinking that this was in the run-up to the Congress. Under the current leadership, there has been an attempt to impose more control. Therefore, not over only the economy but also the markets. So any sense of allowing Chinese citizens to export currency is just counter to what the government has been doing. I think what we will see is more of that trend after the Congress. But still we will have to wait and find out. But I don’t think signs are good for liberalization in the coming months”.
Considering the ban in September on ICOs, frequently the closure of domestic exchanges in China many were looking towards the 19th National Congress. However, the Chinese ruling party to begin to relax their legislation on cryptocurrencies under their own terms.