In recent years, Chinese authorities have faced a severe crackdown on most cryptocurrencies in the country. At the end of last year, the Shanghai Bank of the People’s Bank of China targeted ICOs, deeming them illegal; Earlier this year, there were reports of local governments trying to crack down on local Bitcoin and Ethereum mining operations.
In the West, the view is that China has cracked down on cryptocurrencies in preparation for the launch of its government-controlled digital currency.
But this point of view can be misunderstood.
A branch of Chinese state television that has hundreds of millions of viewers recently did a segment on cryptocurrencies in which it discussed Ethereum, DeFi, among other topics.
Chinese state television just did a segment on Ethereum, DeFi, and more
In an unexpected turn of events, China Central Television, a state-owned broadcaster with 1
加密 货币 about CCTV2 cryptocurrencies on Chinese state television pic.twitter.com/IEysx8rasL
– Matthew Graham (@mattysino) 25 September 2020
Contradicting the sentiment that China is firmly against cryptocurrencies, the segment allegedly covered digital assets as the best-performing asset class since the start of the year, outstripping gold and equities.
And in a key part of the clip, the anchors discussed Ethereum, mentioning how it is a top performer in the cryptocurrency markets, having surpassed Bitcoin, XRP and a number of other altcoins.
As to why this is the case, DeFi has been cited, as well as fears of inflation in fiat currencies.
No report or rough translation of the segment mentions animosity towards the industry despite previous comments and moves by government officials and officials.
A key factor for the growth that goes on
A number of space analysts see the entry of Chinese investors as crucial to DeFi’s ongoing growth trajectory.
Andrew Kang, the founder of Mechanism Capital, commented in July of this year that Chinese cryptocurrency investment is its “beast,” presumably referencing the craze of 2017 and 2018 and how China has been a key force in that.
Others have made similar comments, highlighting the importance of hundreds of millions of investors and their views on cryptocurrencies. With the DCEP and the latest Bitcoin craze, most are aware of cryptocurrency and the basic arguments, but will wait for the government or some authority to give guidance on what they should do.
Jason Choi, investor at The Spartan Group based in Hong Kong, added up about the situation in China when he wrote:
“Broke: DeFi is gaining ground, still below 5% of the total cryptocurrency market cap. Woke: Record QE and Stim back on the table, it’s all a trade. Tailored: 1.2 billion sales retail have just heard of DeFi. “
Broke: DeFi is Gaining Ground, Still Below 5% of Total Cryptocurrency Market Cap
Woke: Record QE and Stim back on the table, it’s all a trade
Tailored: 1.2 billion retail sales just heard of DeFi https://t.co/awfe0DmeT7
– Jason Choi (@mrjasonchoi) 25 September 2020
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