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Chinese government still uses crypto payments, despite forbidding its populace from doing the same
Chinese leaders have shown us a public demonstration of this, and also of how capitalism is a tool to force people into poverty, how those who are powerful trick others into obeying them, and most importantly, for the rest of the world. Of course, that was not their original intent. They had initially set out to explain why cryptocurrency is being forbidden. But they've messed up.
Those who spoke to the masses in China last Tuesday about cryptocurrency represent three state-backed financial groups in China: local online companies that provide financial services, local banks, and payment companies. In other words, they represent the ones in charge of their country's economy. During this event, they explained how the government is forbidding companies from using cryptocurrency in their endeavors. Cryptocurrency could no longer be accepted as payment. However, new laws do not forbid mining or holding, which is bad for those who do not engage in international trade (almost everyone), but offer no change for the biggest companies (which are already tied to the tyrant government anyway).
"Do as I say, don't do as I do, I know what's best for you" says the dictator leadership. China has the biggest crypto mining farms in the world, but they are good to go, as far as the government is concerned.
They cite "money laundry" as the most important danger behind taking crypto as payment. This is somewhat true. Transactions usually go through financial services such as banks, which charge fees, quickly taking money away from people after each and every payment. When a person pays 10 dollars online for a service, less than that is received on the other end. But when peer-to-peer payments are made, specially in a system without fees, no value is lost if there is no fee. The next person will be able to buy just as much as they've sold, instead of less, as it had always been whenever a payment processor is involved. Even when there is a fee, central banks are not the ones collecting it.
This was okay as far as their leaders were concerned, for as long as Bitcoin was still the main cryptocurrency. Since most BTC mining farms are located in China, they were the ones collecting fees anyway. But the emergence of many more digital currencies meant other groups were getting those fees (or rather, wealth) instead. Their own banks couldn't collect fees from transactions within their own territory. That's horrible for tyrants who want to keep everybody in check.
So they've decided to ban crypto payments in their own country. Holding is still permitted, of course, so government agents and mining farms are not harmed in the process. Bitcoin still acts as "money laundry", collecting fees from the rest of the world, but it only benefits the government now, not its populace.