Chinese Media Promoting Cryptocurrencies – The Chinese government has always been against the development of cryptocurrencies in the country. At the end of 2019, the Shanghai bank targeted OCIs, because they were deemed illegal. Earlier in the year, it was bitcoin and ether mining to take the plunge. Faced with these radical actions, the country’s media are retaliating.
A Coordinated Operation
It is believed that China has taken these various crackdowns in anticipation of the deployment of its digital currency, this time controlled by the government. This thesis is subject to many debates. Indeed, different Chinese media seem to have started a coordinated action to promote cryptocurrencies in the country.
It all started on Thursday, September 24, when the Xinhua news outlet published a report on cryptocurrencies. Tracked by the Cankaoxiaoxi newspaper and other public media, digital currencies are called “the best performing market of the year”. The next day, the CCTV channel, with 1 billion viewers, explains in particular that some of these currencies have jumped by 70% during the year.
This growth would be due in particular to ether, which would have largely exceeded bitcoin and XRP. 2 causes were mentioned: the development of DeFi and the growing fear linked to the inflation of fiat currencies.
A Fuzzy Strategy
Some specialists see in this action, a big step for China and an easing of regulations in this market. This is particularly the case of Dovey Wan, founding partner of Primitive Ventures. According to him, this measure should attract more investors to the PRC.
A few citizens seem to feel that this is a campaign to facilitate joining the new digital yuan. Indeed, a few hours after these various announcements, CCTV broadcast a report on the PBoC and its plan to set up massive tests.
As usual, China does not seem entirely clear on its intentions. The idea of promoting cryptocurrencies with no real national interest is rather confusing, which does not prevent it from remaining relevant. Will the media succeed in bending the government?