Xiao Xin of The Global Times, an English language Chinese periodical, just penned an editorial arguing for Bitcoin to be regulated rather than just banning the use and trade of the digital asset.
The leadership of the People’s Bank of China has taken a hard stance against Bitcoin and other cryptocurrencies, warning Chinese citizens of the speculative nature of these new digital assets and arguing that the real world use cases for these coins or tokens are just not there yet.
China’s authoritarian government is uncomfortable with the idea of decentralization and taking the power of financial control away from the central banks. Chinese officials have tried to prevent this exodus from the traditional financial system by blocking the use of cryptocurrency exchanges, and preventing ICOs.
However the number of users of these digital assets are growing world wide, leading some to consider that Bitcoin and other cryptocurrencies just may be the future of commerce.
“There’s an increasing belief that just saying no to bitcoin won’t be the eventual solution to the cryptocurrency issue,” writes Xiao Xin, of the Global Times. “A more fundamental approach would be to embrace the new technology without putting the country’s financial system at stake.”
If the Chinese government attempts to stifle Bitcoin’s growth along with the use of cryptocurrencies, there is a worry that country could be left behind in the possible impending blockchain revolution.
Xin expresses the belief that banning Bitcoin in China will do nothing to actually stop the use of crypto, but rather just force industry leaders to territories that are more welcoming of Bitcoin and the use and development of other cryptocurrencies and blockchain technology in general.
Earlier this month, a Global Times editorial argued just the opposite, stating that Bitcoin should be banned altogether to avoid the risk of a financial crisis brought on by relying on a speculative asset that has been referred to as a “bubble” by many experts.
Opinions are clearly split on just how the Bitcoin craze will shake out, but the growing awareness and interest in cryptocurrencies is leading the world toward a situation where it must be recognized and discussed.
Xiao Xin says that the approach The United States has taken with regulatory and investigative issues will surely expose criminals and the dangers of the crypto market, but the heightened scrutiny from authorities will help the maturing process of cryptocurrency and perhaps bring Bitcoin to the masses.