【G Times】Why does Xi Jinping crack down on Bitcoin?

Author/Picture Design: Giselle Translation: XiaoYu

The CCP recently unleashed a crackdown on Sichuan Province, one of the world’s largest Bitcoin mining zones. On June 19, electrical power to 26 Bitcoin mines in Sichuan were collectively cut off. Many miners suffered huge losses due to the sudden blow. This resulted in a loss of 90% of mining capacity for mainland Communist China.

Doesn’t the CCP control more than 90% of Bitcoin? Why do they shoot themselves in the foot?

Weaken Bitcoin and strike your opponents

The total number of Bitcoins is only 21 million, and 18 million have been mined. If one piece is 60,000 US dollars, the total amount is 1.08 trillion US dollars.

As we all know, due to its anonymous and untraceable nature, Bitcoin has always been one of the trading currencies on the dark web. The CCP has deep connections in the dark web. Wang Qishan was once known as the king of the dark web. According to Mr. Guo, Wang Qishan has his hand in least half of the dark web world.

The dark web involves all kinds of illegal transactions, murder and arson, arms smuggling, and human trafficking. Of course, it can also be used for coups.

Although CCP controls most of the Bitcoin and the dark web, the CCP is not indestructible. In the upcoming general elections, blood stained turmoil will rule the day.

Xi Jinping’s attack on Bitcoin at this time is a sign that he is losing his grip on the dark web. In order to prevent political opponents from using Bitcoin to manipulate the dark web against him, it is necessary to strike first and attack Bitcoin through policies to weaken the power of political opponents.

For example: if Bitcoin is suppressed from 60,000 US dollars to less than 20,000 US dollars, then the opponent’s power will shrink from 1.08 trillion US dollars to 42 million US dollars. Such effective results simply by implementing some policies is something that Xi JinPing is only too happy to coerce.

Intensify financial monitoring

On June 21, the Central Bank of the Communist Party of China issued an announcement stating that in line with combating the trading hype of Bitcoin and other virtual currencies and maintaining financial security and stability, recent discussions were conducted with the Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Postal Savings Bank, Industrial Bank, Alipay and other institutions. Minutes of the discussions included requests to investigate funds accounts of virtual currency transactions, disconnect fund payment links, and intensify monitoring.

Subsequently, “Alipay” immediately announced  that it would resolutely not participate in any virtual currency-related businesses, and will immediately stop payment services associated with virtual currency transactions.

Virtual currency is outside of the existing monetary system and is characterised by non-traceability and non-regulatory. This is a threat to the existing monetary system that relies on senseless money printing at the expense of the public, especially to this dictatorial totalitarian government. Therefore, Xi Jinping’s move is motivated by a widespread attack on all virtual currencies by cracking down on Bitcoin.

Prevent senior officials from fleeing

Since Bitcoin is a decentralised currency without government and bank supervision, it has the characteristics of non-traceability, anonymity, and high value. This also provides opportunities for corruption, money laundering, and holed up money among senior officials in the system.

Recently, there had been rumours that Dong JingWei, Vice Minister of National Security of the Communist Party of China, fled to the United States in mid-February this year and cooperated with the US Defence Intelligence Agency in providing the US government: with the truth about the Wuhan laboratory virus; a list of Chinese spies working or studying in the United States; financial records of American businessmen and politicians accepting CCP’s money and so on…

Prior to every dictatorship collapse, there will be a large number of high-ranking officials fleeing. Xi Jinping’s crackdown on Bitcoin and virtual currencies may also be in consideration to hampering asset transfers and thwarting opportunities for high-level officials to flee.

(The content of the article only represents the author’s personal views)

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