The Asian country is a known advocate of digital currencies, so its increased use in the region should not surprise most. The controversial relationship between America and China is a prominent barrier to American technology in the latter. Trump’s administration brought more strains on the already damaged relationship of the two countries.
The American president’s executive order on Chinese payment methods like AliPay will face enforcement by February. By that time, the government will disallow all Americans from using it as a payment option. Despite the unexpected ban, some sources applaud Trump’s order due to incidences of breach of privacy.
How privacy breach led to China tech ban
People are sensitive about privacy, which necessitated the platform’s ban. The American government explained that China explored electronic devices like phones and computers and illegally accessed personal data on people who buy those devices.
The American government opined that China took the step to access American citizen’s information and track government staff to collect information gotten from their electronic devices. With America banning TikTok, Chins retaliated by banning American apps like Twitter, Facebook, and Google chrome.
Some people ask whether President-Elect, Joe Biden, would allow the enforcement of the executive order. Not many can say for sure, but sources hinted at Biden’s support for data privacy.
The issue of Chinese giant firm Alibaba in America now comes to play. The firm is facing some criticism from the global community. The firm’s CEO, Jack Ma, criticized the Chinese banking system, which made authorities put him on house arrest.
The Asian country’s image worldwide is slightly unusual since the authoritarian community took over the critic’s company, an apparent infringement on his rights. The government lacked transparent property laws, making businesses find it hard to survive in the region, despite the country’s large market.
The Chinese run to Bitcoin to ensure property rights
China’s lack of property rights for citizens is a deliberate act to show that all assets belong to the government. With the restricted traditional banking system, The Chinese run to cryptocurrency to prevent the state from accessing or having power over their investments.
The country’s citizens use Bitcoin to handle payments within and outside their region. The anonymous and decentralized features of crypto help people in countries like China make payments. Apart from being a store of value, the digital asset is an efficient payment method.
International statistics on peer-to-peer trading records high volumes from China with Bitcoin’s use. Even though countries try to ban exchanges, crypto users’ unbeatable determination makes them find a way to use digital assets.
The people of China don’t have many options other than to make do with what they have. Also, Bitcoin’s continuous adoption grows rapidly, despite Federal legislation restricting the decentralized platform’s use.
Interestingly, China is working on its digital currency, the digital Yuan, to promote the currency’s widespread use. Even though the country is building its central currency, it is against peer-to-peer exchanges and disallowed several. Still, the citizens find a way to assure their ownership of assets.