The other day, unconfirmed news of China printing $100 billion have started circulating on the net. It went almost unnoticed though, covered up by other news, so the journalists pricked up their ears.
According to Trustnodes.com, Bloomberg, a news agency often criticising BTC, has published blatantly fake “breaking news”, causing Bitcoin’s price to drop from $45,000 to $43,000.
A few days ago, Bloomberg reported that the “Chinese central bank says all cryptocurrency-related transactions are illegal” without referring to the source.
This has nothing to do with reality, though. China’s Central Bank only restated what it had already said in 2017. The published article went as follows:
“Virtual currency-related business activities are illegal financial activities. Carrying out legal currency and virtual currency exchange business, exchange business between virtual currencies, buying and selling virtual currencies as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, virtual currency derivatives transactions and other virtual currency-related Business activities suspected of illegal sale of tokens and tickets, unauthorized public issuance of securities, illegal operation of futures business, illegal fund-raising and other illegal financial activities are strictly prohibited and resolutely banned in accordance with the law. Those who carry out related illegal financial activities constitute a crime shall be investigated for criminal responsibility in accordance with the law.”
This position of China’s authorities has been public for years, nothing has changed since then. The only amendment is that now Chinese residents helping foreign companies that provide crypto services to the Chinese may be investigated. Nothing surprising.
People’s Bank of China (PBOC) is alleged to have printed almost $100 billion: $10 billion yesterday, on 24th September, and another $71 billion over the last five days.
Perhaps to divert attention from mass Chinese yuan devaluation and dissuade Chinese citizens from fleeing to safe havens and investing in safer assets, the Chinese authorities have decided to reiterate their threats, hoping for Bloomberg to twist their words beyond recognition.
Funnily enough, Bloomberg has recently complained about “shady” cryptocurrencies and fake press releases affecting their prices. Well, now the source seems to engage in shady activity as well.
People’s Bank of China doesn’t deny that crypto trading is on the rise in the country. And printing new money is only the first step to rectify the situation. Moreover, with the launch of the digital yuan, PBOC can’t act all happy about its primary competitors – Bitcoin and other cryptocurrencies.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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