China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

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China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Unread post by uncledad »

Friday, Sep 24, 2021 - 07:17 AM

China expanded its escalating crackdown on cryptocurrencies on Friday when its central bank declared that all activities related to digital coins are “illegal” and must be banned.

Naming bitcoin, ether and tether as examples, the central bank said cryptocurrencies are issued by nonmonetary authorities, use encryption technologies and exist in digital form and should not be circulated and used in the market as currencies. The PBOC specifically targeted overseas cryptocurrency exchanges declaring that it was illegal for them to provide online services to residents in China.

This latest harsh directive, which sent Bitcoin dropping over 8% on Friday, comes as global markets have grown increasingly concerned over a debt crisis involving property developer China Evergrande Group, and which many speculated would lead to a surge in capital outflows via cryptos that bypass China's great firewall. The Chinese government may also be responding to signs that miners are disguising their activities to stay in business according to Bloomberg.

https://www.zerohedge.com/markets/china ... s-tumbling

related...

https://www.zerohedge.com/markets/how-c ... llion-yuan
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Re: China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Unread post by Vercingetorix »

uncledad wrote: September 24th, 2021, 9:31 am Friday, Sep 24, 2021 - 07:17 AM

China expanded its escalating crackdown on cryptocurrencies on Friday when its central bank declared that all activities related to digital coins are “illegal” and must be banned.

Naming bitcoin, ether and tether as examples, the central bank said cryptocurrencies are issued by nonmonetary authorities, use encryption technologies and exist in digital form and should not be circulated and used in the market as currencies. The PBOC specifically targeted overseas cryptocurrency exchanges declaring that it was illegal for them to provide online services to residents in China.

This latest harsh directive, which sent Bitcoin dropping over 8% on Friday, comes as global markets have grown increasingly concerned over a debt crisis involving property developer China Evergrande Group, and which many speculated would lead to a surge in capital outflows via cryptos that bypass China's great firewall. The Chinese government may also be responding to signs that miners are disguising their activities to stay in business according to Bloomberg.

https://www.zerohedge.com/markets/china ... s-tumbling

related...

https://www.zerohedge.com/markets/how-c ... llion-yuan
Tyrannical government wants to control all form of production. It wont be long till they ban cash transactions.
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Re: China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Unread post by Slayer »

Good for them. A vaguely fungible currency, based on nothing but stupidity, should be banished.
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Re: China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Unread post by uncledad »

Slayer wrote: September 24th, 2021, 7:15 pm Good for them. A vaguely fungible currency, based on nothing but stupidity, should be banished.
The bill is called the “Digital Asset Market Structure and Investor Protection Act”2) (“Digital Asset Bill”). And for the majority, it sets out future rules for crypto. However, hidden in this bill, changes to the foundation of the Dollar are proposed.

Notwithstanding any other provision of law, the Board of Governors of the Federal Reserve System is authorized to issue digital versions of Federal reserve notes in addition to current physical Federal reserve notes. Further, the Board of Governors of the Federal Reserve System, after consultation with the Secretary of the Treasury, is authorized to use distributed ledger technology for the creation, distribution and recordation of all transactions involving digital Federal reserve notes.

The said notes shall be obligations of the United States and shall be considered legal tender and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.”

https://www.zerohedge.com/political/us- ... nk-digital

+++ The tax man cometh... the NSA seeth... Homeland enforceth...

And finally, the Federal Reserve Board is to be authorized to create and distribute a “ledger-based” digital Dollar that could be used for everyday transactions. There are a few technologies one could imagine, but let us for now assume this will be a blockchain. Blockchains are great for recording transactions; it is what they do.
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Re: China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Unread post by Vercingetorix »

Slayer wrote: September 24th, 2021, 7:15 pm Good for them. A vaguely fungible currency, based on nothing but stupidity, should be banished.
First, i am not sure you know what fungible means, but....why?

What the fuck is ANY fiat currency based on?

If you can trade a guitar for a video game, then you should be able to trade in any concept that another considers valuable.
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Re: China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Unread post by Gamle-ged »

Anybody remember US Silver Certificates? US Dollar bill, "Silver Certificate.. One Silver Dollar Payable to the Bearer on Demand"

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Re: China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Unread post by uncledad »

Gamle-ged wrote: September 25th, 2021, 1:06 pm Anybody remember US Silver Certificates? US Dollar bill, "Silver Certificate.. One Silver Dollar Payable to the Bearer on Demand"

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Yes. I have several.
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Re: China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Unread post by Vercingetorix »

Gamle-ged wrote: September 25th, 2021, 1:06 pm Anybody remember US Silver Certificates? US Dollar bill, "Silver Certificate.. One Silver Dollar Payable to the Bearer on Demand"

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All printed prior to 1972. Today, they are worth....a dollar
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Re: China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Unread post by Gamle-ged »

Vercingetorix wrote: September 29th, 2021, 12:33 pm All printed prior to 1972. Today, they are worth....a dollar
But NOT a silver dollar! Evidence of bad money driving out good. The bad money is usable as a means of exchange, everyone has become accustomed to it, but it would cost you 21 or so paper dollars to obtain one well-circulated US Silver dollar of no numismatic value.

Actually.. "These silver certificates are typically worth a small premium over face value, with circulated certificates typically selling for $1.25 to $1.50 each. Meanwhile, uncirculated silver certificates can be worth between $2 and $4 apiece."
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Re: China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Unread post by Vercingetorix »

Gamle-ged wrote: September 29th, 2021, 1:45 pm But NOT a silver dollar! Evidence of bad money driving out good. The bad money is usable as a means of exchange, everyone has become accustomed to it, but it would cost you 21 or so paper dollars to obtain one well-circulated US Silver dollar of no numismatic value.

Actually.. "These silver certificates are typically worth a small premium over face value, with circulated certificates typically selling for $1.25 to $1.50 each. Meanwhile, uncirculated silver certificates can be worth between $2 and $4 apiece."
See...that is good. Since we work under the premise of fiat anyway, any currency that a market deems acceptable should be used.

Back when you were young you could still pay a doctor in chickens right? :D
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