London Daily

Focus on the big picture.
Friday, Aug 08, 2025

Did China Initiate Crypto Crackdown to Clear the Way for Its Own CBDC?

Did China Initiate Crypto Crackdown to Clear the Way for Its Own CBDC?

The top executive at Jefferies, Christopher Wood, thinks that China is not interested in Bitcoin's carbon emission, but that the ultimate motive is to launch digital yuan as CBDC.

The financial analyst and Global Head of Equity Strategy at Jefferies, Christopher Wood, recently pointed out that the Chinese officials want no competition for its digital renminbi. This is the real reason for the crackdown on bitcoin and other cryptocurrencies.

China Doesn’t Care About Carbon Footprint, but its CBDC

Wood, who is known as a prominent financial analyst focused on the Asian market, surmised that there is more to the story behind China’s negative stance against crypto mining and trading. In his opinion, the Chinese authorities do not truly care about CO2 emissions and the environment as they may have claimed before. The whole focus is to neutralize the competition to its own digital yuan as CBDC:

“Certainly, the decentralized aspects of blockchain technology, which is so appealing to libertarians opposed to fiat currencies as state monopolies, is the complete antithesis of China’s collectivist system.

The People’s Republic of China clearly understands this. This is certainly a far more important issue to Beijing than the carbon generating aspects of bitcoin mining.”

Wood predicted that the most populated country is very close to launching its CBDC as he expects that to happen at the end of 2021:

“China does not want any competition when it launches the digital renminbi nationally, most likely in the fourth quarter of this year.”

In fact, China launched their CBDC in all quietness as a trial with Bank of China, without much of media attention, perhaps on purpose, but then withdrew from wider adoption.

Compared to China, the Wood expects the US to be far more flexible and accommodative towards cryptocurrencies. He noted that such bans are not likely to happen in western countries.

While he may be right that full ban on crypto in western countries is unlikely to happen, but they might be more likely to pose very heavy regulation on crypto, forcing it to be part of the existing financial system – exactly opposite of the original idea of cryptocurrency.

China’s Crackdown on Crypto Industry

In late May, the Financial Stability and Development Committee of the State Council of China reiterated the ban on Bitcoin mining and trading. A local journalist noted that “this is the first time that the highest level of the Chinese Government has clearly proposed a blow to the mining industry.” Following the announcement, bitcoin’s dollar value plummeted by nearly $5,000 in a matter of one hour.

The fiat currency price of the primary digital asset suffered another significant blow last week when the Agricultural Bank of China announced a ban on crypto usage. The third-largest bank in the country disallowed its customers to interact with bitcoin and other digital assets.

The crypto community speculated that the giant state-run bank intensified its adverse crypto stance because of the incoming digital yuan. It comes as no surprise that the third-largest Chinese bank is actually working on the e-yuan and has launched previous tests.

Source: Did China Initiate Crypto Crackdown to Clear the Way for Its Own CBDC? – Fintechs.fi

Comments

Oh ya 4 year ago
Panatimes is there anything happening in the world other than crypto and fashion? Your site is off the rails. It is called panatimes because it should cover some news about Panama

Newsletter

Related Articles

0:00
0:00
Close
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
OpenAI Launches GPT‑5, Its Most Advanced AI Model Yet
Embarrassment in Britain: Homelessness Minister Evicted Tenants and Forced to Resign
President Trump nominated Stephen Miran, his top economic adviser and a critic of the Federal Reserve, to temporarily fill an open Fed seat
The AI-Powered Education Revolution: Market Potential and Transformative Impact
Chikungunya Virus Outbreak in Southern China: Over 7,000 Hospitalized
French wine makers have seen catastrophic damage to vines that were almost ready to be harvested after the worst fires in more than 70 years burned through the south of the country
US Lawmaker Probes Intel CEO’s China Ties Amid National Security Concerns
Brazilian President Lula says he’ll contact the leaders of BRICS states to propose a unified response to U.S. tariffs
Trump Open to Meeting Putin as Soon as Next Week, with Possible Trilateral Summit Including Zelenskiy
Katy Perry and Justin Trudeau spark dating rumors, joining high stakes world of celeb-politician romances
US envoy Steve Witkoff arrived in Moscow to seek a breakthrough in the Ukraine war ahead of President Trump’s peace deadline
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Karol Nawrocki Inaugurated as Poland’s President, Setting Stage for Clash with Tusk Government
Trump Signals JD Vance as ‘Most Likely’ MAGA Successor for 2028
US Charges Two Chinese Nationals for Illegal Nvidia AI Chip Exports
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
U.S. Tariff Policy Triggers Market Volatility Amid Growing Global Trade Tensions
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
Representative Greene Urges H-1B Visa Cuts Amid U.S.-India Trade Tensions
U.S. House Committee Subpoenas Clintons and Senior Officials in Epstein Investigation
Sydney Sweeney Registered as Republican as Controversial American Eagle Ad Sparks Debate
Trump Accuses Major Banks of Politically Motivated Account Denials and Prepares Executive Order
TikTok Removes Huda Kattan Video Over Anti-Israel Conspiracy Claims
Trump Threatens Tariffs on India Over Russian Oil Imports
German Finance Minister Criticizes Trump’s Attacks on Institutions
U.S. Proposes Visa Bond of Up to $15,000 for Some Applicants
U.S. Farmers Increase Lobbying Amid Immigration Crackdown
Elon Musk Receives $23.7 Billion Tesla Stock Award
Texas House Paralyzed After Democrats Walk Out Over Redistricting
Mexican Cartels Complicate Sheinbaum’s U.S. Security Talks
Mark Zuckerberg Declares War on the iPhone
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
Tesla Seeks Shareholder Approval for $29 Billion Compensation Package for Elon Musk
Nvidia is cutting prices on its RTX 50-series graphics cards after sales slowed and inventories piled up
Ghislaine Maxwell Transferred to Minimum-Security Prison Amid Ongoing DOJ Discussions
U.S. Tariffs Surge to Highest Levels in Nearly a Century Under Second Trump Term
Matt Taibbi Slams Media for Role in Russiagate Narrative
Pilots Call for Mental Health Support Without Stigma
All Five Trapped Miners Found Dead After El Teniente Mine Collapse
Ong Beng Seng Pleads Guilty in Corruption Case Linked to Former Singapore Transport Minister
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
Italy Fines Shein One Million Euros for Misleading Sustainability Claims
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
Declassified Annex Links Soros‑Affiliated Officials and Clinton Campaign to ‘Russiagate’ Narrative
×