![]() ![]() The ruling party’s motto, “Serve the People,” can be applied here, where the state acts to protect the population against abasing predatory practices that may scam the people. Regardless of the form, MLM and the later transactions of cryptocurrencies are anti-government control in nature, making them fundamentally opposed to the Chinese state’s basic ideals. MLM sold “being your own boss” rather than the collectivism traditionally embraced by the Chinese society. ![]() During its first run in a less digitally connected world, it ran up against the state for similar ideological reasons to Bitcoin. MLM selling became popular in the 1990s as a fad introduced from Taiwan via Japan and the United States. Due to its large population, China can be quite susceptible to MLMs and other related frauds known as chuanxiao, as it is often the poor and the less educated who would easily fall prey to such activities. London Underground has been criticized, for example, for aggressive advertising in its stations and carriages, 2 selling a financial technology that was only recently developed and even more recently its dangers understood.Ĭrypto exchanges are also beginning to generate huge amounts of bad press in relation to MLM (Multi-Level Marketing) schemes and pyramid selling, which are both highly illegal activities in China. 1 Why is this the case though? Although many use this story as a negative in the Bitcoin circle, it can be easily argued that the Chinese government has been forward-thinking in this move to secure its own resources, protect its people from financial fraud, and restore control of the future of finance back into the government’s hand.Ĭurrently, in the West, there is a boom in advertising for crypto exchanges. In September 2021, the Chinese government, not for the first time, rolled out a blanket ban on Bitcoin as it had been banned in some way, shape, or form as many as 19 times since 2009. China’s economy was not set up to accommodate such assets. It wasn’t long before the Internet, traditional media, and word of mouth began associating Bitcoin and cryptocurrency in general with pyramid schemes, still-born projects and lost money.Ĭhina was not unique in this criticism of cryptocurrency. However, while the first few entrepreneurs made their fortunes, many in China are quickly becoming skeptical about the unregulated new coinage. China has been ahead of the curve with such advances. But WeChat and Alipay are also potential competitors to the digital yuan's own app.Christian John Hayward Independent Freelance China Analyst TI Youth ObserverĢ021 and early 2022 marked the high point in excitement for cryptocurrency, NFTs (Non-Fungible Tokens), and blockchain technology worldwide. In China, WeChat and Alipay, which is run by Alibaba affiliate Ant Group, dominate mobile payments last year, Alipay also began trialing digital yuan payments. Previously, users could get the app on an invite-only basis. That will enable anyone in those areas to download and sign up to use the digital currency. This week, the PBOC launched an e-CNY app for users in certain regions and cities in China. To date, the People's Bank of China, which issues the digital yuan or e-CNY, has done limited trials in certain cities via lotteries where the central bank has handed out small amounts of the currency to some citizens.īut there are now signs that the PBOC is looking to expand usage of the digital yuan, despite no concrete date for a nationwide rollout. ![]() WeChat Pay has over 800 million monthly active users. It can also be used for purchases online. WeChat Pay allows users to show merchants a barcode on their phone to pay for items in store. ![]()
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