Yesterday, many media outlets reprinted Xinhua’s latest article on Bitcoin. The most critical part of the article is the following two points.
1, Xinhua News Agency recently issued a series of articles to keep an eye on the “cryptocurrency circle” of those things, the purpose is not to let the “air coin” harvest the masses of hard-earned money.
2, if only bitcoin and other virtual commodities are bought and sold, the general public has the freedom to participate in the transaction at their own risk.
The first point of view is basically a continuation of China’s regulatory thinking: that is, when the market bubble gradually enlarges to pour cold water on the market, reminding the masses of rationality.
This approach was used in the early development of A-shares. During a big bull market in the 1990s, the People’s Daily issued an article criticizing the stock market in the face of the crazy influx of the masses, which lit the fuse for the collapse of that bull market. This tactic is also often staged in the cryptocurrency circle, so it was reassuring to see the article so distinctly pointing out this viewpoint. In my opinion this does not mean further regulatory suppression, but just a normal reminder from regulation to market participants.
The second viewpoint was a bit of a surprise to me, the surprise being that as far as I can remember, this is the first time since 201794 that regulation has been proposed for bitcoin, and the general public has the freedom to participate in transactions. This view implies that regulation recognizes the value of bitcoin on the one hand, and implies that regulation recognizes some sort of rationality in bitcoin trading on the other.
This article undoubtedly points out that the real purpose of this round of regulatory “crackdown” on digital currency trading is to remind people of the risks, not to completely deny the value of some value coins like bitcoin. When I saw this article, it reminded me of the following quote from Yao Qian, director of the Technology Supervision Bureau of the China Securities Regulatory Commission, in an interview about the digital yuan: “We can imagine that if the central bank’s digital currency runs directly on a blockchain network such as Ether …… and other blockchain networks, then central banks can leverage their BaaS services to provide central bank digital currency directly to users without the need for intermediaries ……” .
After reading this paragraph, I immediately thought, if the digital RMB runs directly on Ether that won’t be the same as the current USD stable coins USDT, USDC, DAI, etc.? Then the digital RMB would be free to circulate and be used worldwide without barriers and across borders. And if it did, the digital RMB would also be different from these USD stablecoins because it is fiat currency and not guaranteed by collateral to guarantee credibility like stablecoins, so its credit would be even better than stablecoins.
Reading these two articles together, the attitude of the top management is very clear. For the value of digital currencies, there is no doubt that Bitcoin and Ether are highly recognized: the freedom to trade is openly acknowledged for Bitcoin, and Ether is even being considered for issuing digital RMBs with its help.
Reading this, we as ordinary investors don’t have to worry too much. And these regulatory statements are also a wake up call for everyone: in the future, bitcoin and ethereum are very important in our investment allocations, as they are regulatory approved. For investors who are new to this space, such a reminder can only be beneficial, not detrimental. The market as a whole is still in the process of recuperating and soothing its wounds these days, but there is still no shortage of interested giants jumping in ready to enter this market from outside the field.
On January 2, Reuters reported that a subsidiary of Standard Chartered Bank was planning to launch a crypto trading platform in the U.K. and Europe that would be geared toward institutional clients. The news in layman’s terms means that Standard Chartered will also be preparing to open an exchange, like other banking giants that have already entered this space, to provide trading services for digital currencies specifically for institutional investors.
In the current round of the market, institutions are the key force driving the market. Even in the face of such a big drop, Standard Chartered announced its entry, which shows that there is still a large number of institutional investors outside the market with a strong interest in entering the market. This is not at all like a sign of the end of the bull market.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-signs-are-that-the-bull-market-will-continue/
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