What is bound to Happen as Major Chinese Bitcoin Exchanges Close come to the End of October?
Official termination of the Chinese Bitcoin exchange market is slated later in the year. The Chinese government gave a leeway for OKCoin and Huobi, the largest Bitcoin trading and exchanges platforms, to operate up to the close of October.
Suspension period remains unclear
It remains unclear whether the government intends to impose a permanent or temporary nationwide suspension on cryptocurrency trading platforms. Apart from limiting cryptocurrency activities, Wall Street Journal hinted the possibility of restricting bitcoin usage.
A prominent researcher for the Chinese central bank, Huang Zhen, suggested through a commentary that cryptocurrencies threaten the existence of the Central bank and the entire banking infrastructure. Later on, he hinted that the Chinese government would soon issue digital currency to the market.
The Digital Challenge
Central entities can easily manipulate bitcoin exchanges and other cryptocurrencies if there is no decentralization. Decentralized nature of bitcoin is the one that contributes a large number of merits that cryptocurrencies bring, and that is what the Chinese government and Zhen fail to comprehend. Bitcoin currency will decrease in value as centralizing it will threaten its haven.
All is not lost for the Chinese Bitcoin market, Jon Creasy a long-time investor seems to remain optimistic. Creasy aired out that Bitcoin businesses will soon encompass practical and efficient regulations that favor both users and investors with the re-election of the communist party Chinese President Xi Jinping.