Ex-Chinese Banking Pundit Says Many People Use BTC For Anonymous Transactions
The Chinese government’s involvement in crypto has not been friendly. The authorities there have taken various measures to end crypto. In a recent interview, the former governor of the Chinese central bank spoke about BTC and its influence on bilateral dynamics between US- and China.
This was during a recent interview on CNBC. He added that many people would use BTC for anonymous transactions. China has always been an interesting area for major players in the crypto world.
For instance, the Ripple Chief Marketing Strategist recently said that crypto is good but it is also limiting. He added that there was a limit on the number of transactions possible per hour using BTC. The Ripple official, Johnson also discussed how 80% of all crypto mining took place in China. Thus, all power was concentrated on Chinese miners.
Crypto Control In China And US
The former governor went on to talk about similarities between the US and China and how both nations were trying to control crypto. He said that the two countries were working to regulate crypto since crimes were being aided by their existence. China has always been against crypto and they finally decided to ban crypto last year.
However, many have always said that China has shady motives in the crypto world. First is the ideological difference the decentralization has to China. The Chinese philosophy is centralized control. Thus, they could destroy the crypto world just to make a statement.
Criticism Of China’s Influence On Crypto
Nouriel Roubini, NYU economics professor, one of the biggest critics of crypto recently told the US Senate that China poses a major threat to crypto. He added that crypto was quite centralized with about four companies controlling three-quarters of the mining.
The professor added that most of the mining was taking place in Russia and China. Roubini added that China controlled so much of the mining world; they could launch an attack on it at will. He added that China had both the ability and motive to perform an attack on the Bitcoin.
The author of a recent report noted that the rise of BTC in China started in 2013. By 2015, over half of all hash power was controlled by mining pools based in China. At this time, officials and regulators were not clear about the role they should play. The lack of regulation went on until towards the end of 2017 when authorities in China stepped in. After that, prices were sliding quite badly.
The Capabilities Of China
The report also noted the firewall that China has mounted. It was noted that China has tight controls on the internet, which could influence BTC traffic. One of the best known is the Great Firewall. It actively conducts surveillance on internet traffic.
However, that is just one tool. China has another tool called the Great Cannon. It uses it to inject malicious code into packets of traffic and this can cause DDoS attacks. Both of these systems mainly focus on traffic between China and the world.