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Why China blocked bitcoin, virtual currency can be lifted

publish time:2017-11-15 00:44:53 publisher:超级数字资产交易平台
      Shutting down trading places has not allowed digital currency transactions to disappear in china.
       Bitcoin prices continued to rise steadily to 7500 U.S. dollars per fourth days after the cessation of RMB trading. At the same time, OKcoin's C2C model has opened up the RMB trading channels, and the international station of the fire currency network has also increased the entrance of digital currency transactions. Digital currency still seems ambiguous in the future trend of the domestic.
       In November 4th, 2017 in the Gulf of Hangzhou forum, AI news agency exclusive interview with former president blockchain working group, China Internet Finance Association Chinese bank leader Li Lihui. He believes that now the total market value of the virtual currency is only about $150 billion, the total market value of fiat money much higher than this figure, so the present situation of legal currency does not constitute a threat. But some countries still need to pay attention to the possible effects of virtual currencies or tokens. For example, the country's economic instability, legal value reduction, bitcoin, Fang Fang and other digital coins will expel legal currency.
       Is bitcoin a token or a digital currency?
       In the speech, Li Lihui first distinguishes the concept of digital money and tokens. He believes that the digital currency is the use of digital currency, digital currency has legal status, national sovereignty and the main responsibility to issue an endorsement shall constitute a digital currency.
      On the market called "virtual currency" is too square to bitcoin, as the representative of the tokens, no country, no sovereign endorsement, no subject responsibility issued qualified, no national credit support, therefore it is not legal tender, nor is a digital currency.
       The transaction of "virtual currency" has the characteristics of anonymity, cross street and unlimited. It may become a tool for illegal flow of funds and a tool for speculative transactions. In the drug trading in the dark net market, the use of token transactions is concealed.
       But the token block chain based on technology, has been used as the unit of account payment tools in the virtual community participants recognized, through trade and currency, the formation of the transaction price, which also has the attribute of the financial tools, can be defined as virtual currency.
       Can virtual currency replace the traditional monetary form?
       Li Lihui believes that the payment Alipay.com, electronic payment and other micro channel involved in Renminbi, is at this stage the real meaning of virtual currency "". In the future, whether it can replace bank card as the main payment tool depends on four key factors.
       First, efficiency can achieve more efficient point of the transaction; second, whether the system is safe and reliable, intact, can not be changed, can track the transaction information; third, the cost can save transaction costs and distribution costs; fourth, the law on the law of digital currency can be confirmed.
       Much attention should be paid to the development of tokens or virtual currencies in four aspects.
       First, the token is at an alarming rate may continue to expand, to the legal currency hereditary field attack cities and capture territories. The current total market capitalization is only a token of legal tender is not a threat to a drop in the bucket, the legal currency structure, but the token is difficult to control and more difficult to eliminate.
       Now the total market value of the virtual currency is only about $150 billion, the total market value of fiat money much higher than this figure, so the present situation of legal currency structure does not constitute a threat. But some countries still need to pay attention to the possible effects of virtual currencies or tokens. For example, the country's economy is unstable and the legal value is down. He warned that bitcoin, Fang Fang and other digital coins will expel the legal currency.
       Second, block chain initial public issuance of token financing, the so-called ICO outbreak, may affect financial stability.
       Third, the democratic decision-making mechanism and market mechanism adopted by the common block chain can both cause the split of tokens and promote the upgrade of tokens.
       Bitcoin community has been faced with two major problems. First, bitcoin is implemented by the vast majority of the participation mechanism, different divergence may lead to the splitting of bitcoin. Two is a low efficiency problem, bitcoin system transactions per second less than 10 pens, the cost of a single transaction up to $4. The future success of the bitcoin community should avoid the new branch, can improve the efficiency remains to be seen.
       Fourth, the developed countries' attitude towards virtual currency changes, which may affect the development trend of virtual currency.
       In the case of Singapore, the tight to loose policy in Singapore, allowing the so-called regulatory mechanism, the issue of tokens for non residents, but did not allow Singapore citizens to purchase, token and virtual currency speculation.
       Li Lihui concluded that the financial application of new technologies, if not introduced into the appropriate river will cause disaster, appropriate regulatory action is necessary.
       Three points of supervision of digital Finance
       Li Lihui believes that ICO and other illegal fund-raising behavior and block chain, block chain application and block chain bottom technology research and development is distinguished.
       ICO, which is suspected of illegal fund-raising, is still illegal and should be banned even if it is covered with a chain of blocks. The block chain, which has been successfully applied in the financial field, has broad prospects for development. Just like using the Internet platform to do financial fraud, illegal fund-raising, such as e rent treasure event, of course, to crack down on punishment. But this does not mean that the Internet and Internet banking are not allowed to develop.

       He put forward three proposals for the supervision of digital finance.
First, illegal financing and illegal financial transactions, including illegal fund-raising and illegal financial transactions based on mobile Internet platform and block chain technology.
       Two, strengthening international supervision and coordination, forming consensus of supervision, adopting international supervision