I was shocked by a explosive piece of news this afternoon, and even Juzuo, who had been playing badly, couldn't sit still.
This article has now been deleted by NetEase News, and the content of the article roughly said that China will lift regulatory restrictions on cryptocurrencies such as Bitcoin within the next three months.
Juzuo saved the content in time, which is roughly as follows:
Such blockbuster news did not come from traditional gossip, but from a cryptocurrency community.
Although Ju Zuo mentioned in previous articles that the approval of Hong Kong's ETF was approved by Beijing, it does mean that the country's policy on cryptocurrencies is changing.
But this does not mean that the higher-ups will choose to slap themselves in the face in such a short period of time.
Especially when the performance of Hong Kong ETFs is so poor (this story can be told separately later).
That's why Ju Zuo said that this thing is impossible.
It is not a question of distance, but a question of existence or non-existence.
The reason is actually not complicated, it’s just that most people look at the problem from a different perspective.
Let’s assume that cryptocurrencies are really unblocked in the future and see what impact it will have:
1. Ju Zuo believes that the most serious negative effect is that it will make the policies and regulations related to foreign exchange control become a dead letter.
my country's foreign exchange controls have always been very strict, with individuals only having an annual foreign exchange limit of US$50,000.
Assuming this policy is passed, do you know how much money will be converted into digital currency and run away?
Do you know how much money has already fled under the current background of strict control?
In our country, there will not be a situation where one policy will directly make another regulation invalid, so it cannot stand from the root.
2. The stock market collapsed. The nature of Myanmar A stocks has made everyone numb. The world has suffered from Myanmar A stocks for a long time. It’s just that there is no place to invest.
Now that cryptocurrency is recognized and can be invested in legally, what is the point of Myanmar A?
Isn’t it exciting that cryptocurrencies are open 24/7 all year round?
For the country, no matter how bad Myanmar A is, it is just meat rotten in the pot. At least it has enabled domestic companies to meet their financing needs. But when it comes to the cryptocurrency world, are you just waiting for you to switch to U and BTC at any time and then lose control?
3. The difficulty of anti-money laundering has increased significantly, and the surge in currency-related cases will bring great pressure to the public security system.
At present, cryptocurrency has advanced case handling experience in some regions and cities in my country, but in most parts of the country, both economic and criminal investigation police officers still do not have enough control over such cases.
Once the restrictions are relaxed, the number of cases involving fraud and pyramid schemes will surge visibly, which will have a huge impact on ordinary people in the country, and the public security system will be under too much pressure.
4. Blind obedience by the public, huge social and public opinion pressure. The authority and endorsement of the government have always been the orthodox force. Once it is released, private capital will flow in in large quantities.
Even if they are all normal trading behaviors, most people will still suffer losses, just like Myanmar A.
But this matter, if done well, there will be no success, and if done badly, there will be success.
By then, the surging public opinion and saliva will be enough to drown a person.
Which leader do you think would be so screwed up that he would make the decision to do such a thing?
Of course, there are many other aspects that will also be affected, and it is not even possible to cover them all in one article.
So after listening to Ju Zuo’s analysis, do you still think this thing has potential?
Some people may think that Hong Kong’s compliance process and the approval of the ETF mean that there may be a larger-scale relaxation in the future, but I would like to say that before making such remarks, you’d better study what "one country, two systems" means.
In fact, regarding the domestic attitude towards cryptocurrency, Ju Zuo has also mentioned it in previous articles. That is, open recognition is impossible, but silence is the maximum degree of acquiescence.
Whether you can understand it or not depends on how you understand it.
If you are interested in previous articles of Juzuo, you can click on the avatar to find this content.
