China Contradicts Itself On Cryptos

by Marvin Dumont

Earlier this year, Beijing banned the trading of Bitcoin (BTC) and other cryptos, which sent prices temporarily plummeting. Officials said they implemented restrictions because digital coins threaten the yuan as well as undermine the stability of the world’s second largest economy.

Now comes Beijing’s propaganda.

Earlier this month, the People’s Bank of China (PBoC) published a paper that argued fiat currencies are superior to cryptocurrencies, and that these digital coins do not threaten China’s monetary system.

(Maybe that’s because Beijing has already banned their use.)

In “What can a blockchain do and not do?” the author argued that blockchain will have little to no impact on China’s financial system, and that virtual currencies have no intrinsic value. That’s according to Xu Zhong, the director of the central bank’s research unit.

It seems like a weak or illogical argument. If true, then why ban cryptos in the first place?

The actions of central authorities showcase the need for borderless, trustless mediums of exchange. Central banks ban competing forms of money, and try to convince the masses that devaluing fiats are somehow superior.

Which begs the question: Just how exactly are depreciating assets superior to appreciating assets? The problem is, you face harassment or punishment from Beijing and other authoritarian regimes for asking such questions.

In the case of China, the nation of 1.4 billion people has some of the most restrictive capital controls anywhere: The Chinese cannot take their money out of the country. (However, with Bitcoin and other cryptos that’s getting a bit easier.)

Tech-forward countries like Estonia, Malta and Japan are among the most crypto-friendly jurisdictions. Officials in these nation-states recognize the value of decentralized, digital, and sovereign-neutral monies.

Cryptocurrencies give consumers and investors the freedom to choose what medium of exchange they’d like to use. Indeed, legal tender laws can be too restrictive because it forces consumers and investors to pay with devaluing fiats — the same government-issued cash that lose significant buying power over time.

Apollo Foundation believes in the power of trustless and private money.

We’re building an unregulatable and untraceable cryptocurrency so you can pay, trade and invest with ease. Apollo (APL) will be an all-in-one cryptocurrency and it will feature 0% inflation. It will also give users the ability to perform any blockchain-related task offered by mainstream cryptos.

Moreover, APL will have the best privacy features of any digital currency: It will let you transact in total anonymity by incorporating innovations such as coin mixing and coin shuffling, IP masking, private transactions on blockchain, and trading on decentralized exchange.

Third parties are retaliating against competing forms of money by passing restrictions, capital controls, and banning the use of digital coins. That means they’re threatened, even if Beijing tells you otherwise.

Tech-forward people know there are alternative forms of money.