Was anyone surprised that Xi was back in power? Anyone?
While many of the things that happened in China's elections won't have immediate far-reaching impact on us, there was something said that should be cause for optimism for China's future cryptomarket. The regulatory committee stated that they would look into using technology to strengthen their financial structure. Hmmm. I wonder what that means.
It's hard to not read into it, right?
We all know one of the biggest reasons China shutdown BTC and ICO operations in its country is because they felt that money was leaving the country. Although the Chinese yuan stood strong behind the richest government in the world, when cryptocurrency as payment (tenX, bonpay) becomes fully implemented, asset circulation/accumulation would be impossible for the mainland. So what's the solution?
Could China develop their own cryptocurrency like Russia's CryptoRuble? Probably not, because people are not going to invest in a completely traceable, state owned-and-regulated digital currency. It's not a decentralized product.
Can they adopt NEO? ETP? Something else? Would that catapult the value of those currencies in the short run? Yes, yes, yes, quite possibly, but let's think about that for a minute. If the Chinese government accrues enough NEO or ETP to have a control over the prices and they begin to inflate/deflate the prices by the backing of the government's bank, development and implementation of these currencies would come to a screeching halt. After all, why use a platform that is spied on by one of the world's scariest governments? We all hate on ripple for holding onto a large sum of XRP, so why would we trust anyone else with the same power?
The best case scenario for NEO and ETP is not government adoption but an open Chinese market, but that also isn't likely to happen, for the reasons stated above. Anything that hinders CNY dominance will be heavily regulated.
So the aftermath is ambiguous. Here are some takeaway points from me.
-NEO is an amazing platform with CoZ. It will thrive unless it is swallowed up by the Chinese government.
-With China cracking down on Cryptoexchanges, I postulate that China's citizens will not be looking to invest in BTC or ETH or LTC directly....for now.
-They will, however, continue to invest through privacy coins...as long as it is untraceable. There's only a handful of coins that are completely untraceable, so do some research. I'm buying NAV.
I hope this informed you a bit. Thanks.
img source: coindesk