Why doesn’t China adopt cryptocurrency?

[Starmix]

It is quite remarkable that China, despite being a global economic powerhouse and a leader in technological innovation, has chosen to maintain a firm stance against cryptocurrency. Here is why: it is so significant, China’s economy is massive, and its decisions have a ripple effect on the global market. Their crypto ban has undoubtedly slowed down the overall adoption rate and influenced the regulatory approach of other countries. China is at the forefront of technological advancements in many areas, including blockchain technology. However, they have chosen to focus on developing their own central bank digital currency I CBDC), rather than embracing decentralized cryptocurrencies. This indicates a preference for maintaining control over their financial system.

China’s government prioritizes control and stability above all else. Cryptocurrencies, with their decentralized and anonymous nature, are seen as a threat to their control. The government is concerned about capital flight, financial crime, and the potential for social unrest. China is actively developing its own digital currency, the e-CNY (digital yuan). While China has banned crypto trading and mining, they are still investing in blockchain technology. They believe that blockchain, such as supply chain management and data security, can be achieved without the need for decentralized cryptocurrencies