😮😮Why not open up cryptocurrencies? ? ? 😮😮

There are several main reasons why China does not open up cryptocurrency:

1. **Economic Stability**: The Chinese government is concerned that the high volatility of cryptocurrencies may pose risks to the country’s financial system and economic stability. Severe fluctuations in cryptocurrency prices and the lack of central control may lead to capital flight, illegal fund transfers, and threats to the yuan.

2. **Control capital flows**: China has strict controls on capital outflows, and cryptocurrency can easily bypass government supervision of capital flows due to its decentralized and cross-border transaction characteristics. Therefore, opening up cryptocurrencies could weaken China’s control over foreign exchange flows.

3. **Combating illegal activities**: Cryptocurrencies are partly used for illegal activities such as money laundering, tax evasion, and financing of terrorist activities around the world. The Chinese government emphasizes that it will strictly crack down on such criminal activities, so restricting the circulation of cryptocurrencies is considered a way to prevent such activities.

4. **Promotion of Digital Yuan**: China is promoting the use of Digital Yuan (e-CNY), a central bank digital currency (CBDC) issued by the People’s Bank of China. Opening up cryptocurrencies could compete with the development and promotion of the digital yuan and weaken the government’s control over the country’s monetary system.

5. **Regulatory Uncertainty**: Due to the technical complexity and global nature of cryptocurrencies, the Chinese government faces challenges in how to effectively regulate this market. This makes China more inclined to ban cryptocurrency trading and mining activities rather than implement relevant regulatory measures.

These reasons have led China to choose to ban large-scale cryptocurrency transactions and activities in order to maintain its control over the financial system and the stability of the economy.

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