China Reopens To Bitcoin And Cryptocurrency?

These are rumours that chase each other from time to time, but who knows if this really is the right time. China, a country very hostile to cryptocurrencies and decentralised finance, as is well known, may be ready to soften its stance on digital payment instruments and accept them in the country or, at least, on local computer lines. The rumours are no longer just those of Justin Sun, founder of Tron, which by now has lost a lot of reliability, but they are chasing each other on numerous X accounts owned by insiders.

What makes the difference between rumours that don't deserve too much credit and those that do? It is often difficult to say but, not infrequently, it is the names that distinguish the two situations. This time, among the megaphones telling of the possible Chinese reopening, there is also Mike Novogratz, head of Galaxy and manager of some cryptocurrency-based ETFs on Wall Street, in partnership with Invesco. His voice is considered more reliable than the others that are bouncing the news, so it has attracted more attention than the usual speculation that, punctually, turns out to be fake news.

China and Cryptocurrencies, the Importance of Sources

Generally speaking, it is a good rule of thumb not to take anything that is shared on the former Twitter, now X. It is a social that has a significant history of spreading falsehoods, sometimes due to a total absence of fact checking, sometimes due to healthy controlling of this or that user. Why then should we overlook this good practice, and think that there may be some truth in the news that China is considering lifting the ban on Bitcoin and cryptocurrencies? The reasons for this impression are basically twofold.

The first Tweet came from a very followed account

The first to mention this possibility, and to point out that he had been hearing about it for a few days, was a highly-followed account on social, which not infrequently anticipated real news and, for this reason, earned a certain esteem and reliability. To be fair, however, BITCOINLFG has disseminated, several times, also unfounded anticipations, using catchy posts only to increase its following.

This post alone would certainly not have been enough to attract the attention of the many Internet users who relayed the news. Novogratz's intervention was also needed.

Mike Novogratz's Relaunch

The news, which was marginally possible, became plausible following the sbottling of Mike Novogratz, who is certainly not a big talker. The CEO of Galaxy is in fact involved in cryptocurrency transactions, even at an institutional level in the US, and doesn't put his face into fabricated issues. If he sticks his neck out, it is because he has some basis. On this occasion, however, he immediately put his hands out, as they say, prefacing his speech with a if it is true that specifies how there is not too solid a source.

The fact remains, however, that in front of Galaxy colleagues and investors, Novogratz spoke of this possibility, rather than dismissing it by labelling it as hogwash.

Let's not Trust those who Spread Pre-Sale

We at SpazioCrypto, who keep up to date with the cryptocurrency news on a daily basis, either out of personal interest or to be able to bring you the latest news, are used to check immediately, on websites and other publications, if there is any truth behind any news. We also urge all our readers to do the same, because lies are rife on social platforms.

A rule of thumb we would like to give is to doubt openly any account that predominantly, or very frequently, spreads pre-sales, i.e. early and particularly profitable investment opportunities. Typically, it is a sign of a profile that aims to show off with click-bait content.

So what will China do?

Until proven otherwise, we are led to believe that nothing will change and, at least in the immediate term, the exchange of yuan in cryptoassets on Chinese soil will remain prohibited. The landscape of decentralised finance is changing fast, but Beijing may still remain wait-and-see and only consider reintroducing the possibility of buying tokens with eastern currencies once the system has grown even bigger.

On the other hand, Hong Kong has already authorised the buying and selling of BTC-based ETFs and China may decide to step up to the same financial plateau to confront its rival, the financial mega-city occupying the portion of land that Beijing wishes to bring back under its flag.

We could say that it is unlikely to see a Chinese reopening of this magnitude in the near future, but in the medium to long term, it could prove to be a necessary choice in order to remain in the market with a major presence.