Elon Musk savages China’s crypto ban with swipe about Xi fearing loss of ‘power’

Elon Musk announces suspension of Bitcoin Tesla purchases

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The SpaceX boss spoke at Codecon on September 28, a tech event for developers. Speaking to the host of the event, Mr Musk said: “China does not love cryptocurrency because cryptocurrency reduces the power of centralised government and they don’t like that.” Then the host of the event asked the Tesla boss: “You can influence cryptocurrencies more than China?”

In reply, Mr Musk just smiled, before adding that “there is a long term role for crypto and it is not possible to destroy crypto.”

“Governments should do nothing about Bitcoin and just let it be,” he said.

The news coincides with China’s recent comprehensive ban on cryptocurrencies which many suggest is designed to clear the way for Beijing’s release of its own digital currency later this winter.

China is currently piloting its Digital Chinese Yuan, a state-backed digital currency.

This new digital currency will offer the convenience of a cryptocurrency, but with none of the privacy and decentralisation benefits.

Beijing plans to showcase the Digital Chinese Yuan during the 2022 Beijing Winter Olympics and hope to have it up and running and available for use by foreign visitors.

China, therefore, has operated a scorched-earth policy against all cryptocurrencies that are beyond its control.

According to Beijing, there will be coexistence of the Digital Chinese Yuan with any other virtual asset, such as Bitcoin or Ethereum.

In late September, China’s central bank and its National Development and Reform Commission issued a document that banned cryptocurrency mining within the nation.

This was a development on an earlier crackdown in May, which sent shock waves through cryptocurrency markets.

The Central Bank in Beijing then issued another document on September 24 which declared all cryptocurrency transactions illegal within China.

The document states all companies providing cryptocurrency trading services to Chinese citizens will be deemed as engaging in illicit financial activity.

Speaking to Wired, Jonathan Padilla, a co-founder and deputy director of Stanford University’s Future of Digital Currency Initiative, said: “The ban is sweeping, absolute, comprehensive.

“It is not focused on some partial aspect.

“It seems that top-level government officials are taking this on.”

However, the September 24 document did not have the same effect on crypto markets as China’s crackdown in May.

In fact, major cryptocurrencies such as Bitcoin and Ethereum have soared in value since the Chinese central bank’s document was released.

Ethereum has seen a 20 percent rise in the last seven days to a current price of $3,417.

Bitcoin has seen a rise of 15 percent in the last seven days to a current price of $48,027.

It has been suggested that the current cryptocurrency bull-run is due to, in spite of Chinese attempts to enact a complete ban on it.

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