Why China's ban on Bitcoin may be temporary

China’s ban on Bitcoin and other cryptocurrencies may be temporary, to appease international agencies and hardcore communist members ahead of the upcoming Communist Party convention.

China’s big government and banks cannot tolerate Bitcoin. It threatens their very existence, as it was previously written in a piece here.

That’s in the long term, though, when Bitcoin has the potential to replace the yuan in everyday transactions, and as a monetary asset.

At present and in the immediate future, however, the size of the Bitcoin economy is far too small to be a real threat to the Beijing government and the banking system it owns and manages.

That’s why something else must be at play behind the Bitcoin ban. Like an effort by Beijing to demonstrate to international agencies, such as S&P Global, that it is in good control of the financial system and the credit conditions of the country.

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Source: Why China’s Ban On Bitcoin May Be Temporary – Forbes