Chinese State Media Hails Crypto as Best-performing Asset of 2020
In a rare occurrence, numerous Chinese State media outlets published news hailing cryptocurrencies as the best performing asset of 2020. The coordinated media push comes amid efforts by the People’s Bank of China (PBoC) to release its central bank digital currency (CBDC).
Chinese Media Wax Lyrical About Crypto Investment Viability
Tweeting on Friday (September 25, 2020), Primitive Ventures founder Dovey Wan screenshots of news publications from various Chinese media agencies dedicated to cryptocurrencies. These publications cut across print, TV, and online blogs.
According to Wan, media houses like CCTV and Xinhua produced news content praising cryptos as the best-performing asset year-to-date (YTD). Indeed, cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Chainlink (LINK) have seen massive price gains since the start of the year.
Many crypto tokens have even recovered from the Black Thursday crash of March 12 which affected the broader financial arena. The coronavirus pandemic and efforts by various governments to provide economic stimulus package via an influx of cash into the economy has also seen more investors choose assets like Bitcoin as a hedge against uncertainties.
In the U.S., the first round of stimulus checks sent in April also provided fresh investment capital for people to “stack sats.” As reported by BTCManager, a sizable number of people used their $1,200 stimulus checks to buy Bitcoin. To put the massive gains offered by crypto in 2020 into perspective, BTC purchased with the $1,200 stimulus checks in April is now worth over $1,800.
PBoC Sets Sight on Expanding DCEP Beta Testing
The positive coverage from these state-controlled media organizations comes despite the ban on retail crypto trading in the country. Since first enacting the prohibition back in September 2017, regulations in the country have taken steps to increase the scope of the ban.
Indeed, the crypto trading ban has also fallen into Beijing’s broader forex restriction as the government seeks to prevent capital flight especially in its ongoing economic tussle with the U.S. With retail forex under strict supervision, wealthy Chinese individuals are reportedly storing their wealth in cryptocurrencies. Back in May 2020, the country’s parliament passed the first Civil Code which among its provisions legalized the inheritance of cryptocurrencies.
In another broadcast reported by Wan, China’s central bank is reportedly working towards expanding the beta testing field for its digital currency electronic payment (DCEP) project. The PBoC has already extended its CBDC test to cover major cities like Beijing.
Back in August, the central bank revealed that the CBDC will focus exclusively on retail microtransactions. With China already accelerating its progress with sovereign digital currencies, other major economies are now delving deeper into the CBDC race.