In recent years, the Chinese authorities have cracked down on crypto in the country in most cases. At the end of last year, the Shanghai People’s Bank of China targeted ICOs and declared them illegal; Earlier this year there were reports of governments planning to crack down on local Bitcoin and Ethereum mining operations.
The West believes that China has cracked down on cryptocurrencies in preparation for launching its own digital currency. However, this could be a misunderstanding.
A branch of Chinese state television with hundreds of millions of viewers recently aired a feature on cryptocurrencies that discussed Ethereum , DeFi and other topics, among others .
Chinese state television promotes Ethereum and DeFi
In an unexpected turn of events, China Central Television, a state-run television broadcaster with a billion viewers on its channels, aired a segment on cryptocurrencies. Matthew Graham, a China-based investor focused on crypto assets, shared the aired segment on his Twitter feed .
Contrary to the opinion that China is strongly opposed to crypto assets, the report states that digital assets have the best performance in the asset class, outperforming gold and stocks.
And in an important part of the clip, the moderators discuss Bitcoin Circuit – and how the asset holds a top position in the cryptocurrency markets, overtaking Bitcoin , Ripple’s XRP and a number of other top altcoins.
DeFi is cited as the reason for this – as is the fear of inflation in fiat currencies.
There is no mention of hostility towards the industry in any reports or translations from the segment, despite prior comments and actions from government departments and officials.
An important engine for further growth
A number of analysts in this room see the entry of Chinese investors as crucial for the further DeFi growth path.
Andrew Kang, founder of Mechanism Capital, commented in July that Chinese investments in crypto were its „own beast“ – presumably related to the madness of 2017 and 2018, and how China played a key role in it.
Others have made similar statements, highlighting the importance of hundreds of millions of investors and their views on crypto assets. In the context of the DCEP and the latest bitcoin madness, most are aware of the cryptocurrency and related issues – but they will wait for the government or other agency to give instructions on what to do.
Jason Choi, investor in Hong Kong-based The Spartan Group, sums up the situation in China well in his letter:
“Broke: DeFi is gaining traction, still below 5% of the total crypto market cap. Woke: Record QE & Stimulation back on the table, it’s all a trade. Tailor-made: 1.2B retail investors have just heard about DeFi. „