While Cuba joined El Salvador in officially adopting the use of cryptocurrencies, China once again lashed out at this electronic currency, ensuring that they will impose sanctions on those who use Bitcoin for lacking real value.
Bitcoin and other cryptocurrencies “They are not legal currencies and they have no real value to back them up”, assured the Deputy Director of the Financial Consumer Rights Protection Office of the People’s Bank of China (PBoC) Yin Youping.
According to a report by the government news outlet People’s Daily Online, Youping said that cryptocurrencies are purely speculative assets.
The official also recommended that the public increase their awareness of the risk of having them and stay away from the cryptocurrency market to “protect their pockets.”
Do they have real value cryptocurrencies like Bitcoin?
Several central banks, including the Federal Reserve (Fed) of the United States, have expressed concern about the undetectability of cryptocurrencies like Bitcoin.
This, they assure, allows criminals to make transactions without being located.
Another concern is that these virtual currencies have no endorsement on any tangible material good, they are only based on the trust of consumers.
For August 29, the price of a Bitcoin went above $ 48,000.
Defenders of cryptocurrencies ensure that the decentralized technology with which they are made and distributed (blockchain), will be the way of marketing of the future.
Sanctions in China
The PBoC executive said that anticipating the possible rebound of the cryptocurrency market and its related operations in China; that central bank will monitor overseas cryptocurrency exchanges with its merchants, in collaboration with local authorities.
The institution also plans to take what it called “Strong measures”, against people who use cryptocurrencies and who will block websites, applications and corporate channels of trade of the same.
The PBoC together with other Chinese government agencies created systems intended to monitor, alert and block the advertising of Bitcoin.
This as part of an effort they called a “General fight against illegal fundraisers powered by cryptocurrencies” and blockchain technology.
Youping hinted that “if the general public finds clues about illegal fundraising crimes (ie cryptocurrencies like Bitcoin); you must immediately inform the authorities relevant ”.
Cuba seeks to recognize cryptocurrencies
Cuba announced on August 26 that it will recognize and regulate cryptocurrencies like Bitcoin, citing “reasons of socio-economic interest”.
The so-called resolution 215, which was published in the Official State Gazette, says that the central bank will establish new rules on how to deal with digital currencies.
Commercial related service providers will now need a license from the central bank to continue their operations.
Cuba’s Decision to Join El Salvador in Adopting Cryptocurrencies could help the country bypass US trade sanctions.
These sanctions were established under the government of Donald Trump and have been maintained in the presidency of Joe Biden.