Breaking News

Is China still in the Game?
Editorial Team

Breaking news about China’s developments want the two biggest local exchanges, Huobi and OKCoin, to continue their operations not until September but until the end of October.

According to the translation of Sina, this proposal “is still under consideration.” It is believed by now that the CEO-s of Huobi and OKCoin met with regulators aiming at a more lenient treatment for those exchanges. The meeting results are still unknown. Many media reports connect the important political event to the five-yearly congress of the ruling Communist Party, which will take place in China on October 18.

Analysts suppose that there is a conflict of interest and a political game behind this banning instruction. The result of the conference will show the next dominant authority, which will be on its hand the issue. China has to decide if it is ready to proceed to reforms towards the liberation of the market through an ideological struggle, quitting outdated communist ideology.

Bitcoin may be a proxy in this speculating game, as the government has not yet presented an official public statement on the closing of the exchanges. Another explanation is that China aims to keep Bitcoin value low. This condition could allow PBoC to freely devaluate its currency and gain in a zero sum game at the expense of other nations. However, is this a genius solution? Some believe that another strategy would be more beneficial. They could limit the amount of bitcoin their citizens buy in line foreign exchange control rules.

Downgrading the value of Bitcoin may turn a technologically educated generation that likes alternative investing options and opportunities against the country. In any case, we have to wait patiently until October.