Earlier this year we read the news of the fall in the price of Bitcoin due to pressure from the Chinese government and its investigation of transactions carried out on the main Bitcoin listed platforms such as BTCC, Huobi, and OKCoin, based in Beijing and Shanghai. The Chinese central bank’s pressure came along with its interest in a digital bank exchange trial using a cryptocurrency that they had created in order to increase the transparency of transactions by helping to combat money laundering and tax evasion the pair will lower transaction costs. This new crypto-currency would be completely legal, having the support of the Government, unlike the Bitcoin, which operates outside the financial system and is a very effective tool to carry out transactions that want to evade control of countries and institutions. Taking into account that the Chinese are responsible for most of the transactions with Bitcoin and the weakness of their local currency have seen in this crypto-currency an alternative that allows them to bypass the restrictions imposed by the Chinese government on the departure of The capitals of the country and thus be able to carry out transactions outside its borders without impediments.
China, the world’s second largest power, knows the advantages of Bitcoin and what might be a “government crypto-debt”, for example, a real solution to the saturation of foreign payments, and a crypto-currency could help lower taxes on such payments. Transactions would be easy to track and could better combat corruption. In addition, it would be possible for them to analyze data and obtain economic information in real time. This would help the government in developing its plans and strategies and would obviously be a breakthrough for a government as “controlling” as it is Chinese and obviously for all existing governments in general who need to take control of everything they own And access to those possessions without problems.
Either way, Bitcoin and most crypto-currencies were developed to be decentralized and not dependent on any nation, if a government enters the field of cryptography it could challenge many aspects of the decentralized situation of other currencies. If China’s CryptoDivisa is successful, other governments will follow the same path. What would be the end result for non-centralized crypto-currencies if governments’ crypto-currencies start to circulate?