To make matters worse this week, just a few hours ago, the Chinese Council of State released an official report to the 51st meeting of the State Council Financial Stability and Development Committee, which also mentions that it wants to take action against Bitcoin.
Bitcoin is mentioned in this letter specifically in the second point, which deals with the prevention and control of financial risks.
„Crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field."
The announcement comes just after China has decided to limit the activities of financial and payment institutions and their participation in trade and services in cryptocurrencies.
As a result, it seems that China wants to fight and destroy Bitcoin, but why did it decide to do so at a time when the Digital Yuan is almost fully ready to enter the Chinese economy and people's daily lives?
Boris Schlossberg, managing director of FX Strategy for BK Asset Management, aptly commented on China's likely plans:
The digital yuan is both programmable and trackable giving the Chinese government enormous control over the economy. Not only will Chinese policymakers know every consumer choice made in the economy, but they could also directly affect spending behavior by making the currency expirable by a certain date,
Boris also added for CNBC that this type of "absolute power" over the wealth of its own citizens is a "primary driver" for China to complete and launch the Digital Yuan.
