Bloomberg, the anti-bitcoin publisher of the pre-internet age, has sent out outright fake ‘breaking news’ that sent bitcoin’s price down by $2,000 from $45,000 to $43,000.
As can be seen above Bloomberg said, without linking to a source, “the Chinese central bank says all cryptocurrency-related transactions are illegal.”
That’s false. What China’s central bank said is just a re-iteration of what they said in 2017. Published on September 15th, PBOC stated:
“Virtual currency-related business activities are illegal financial activities. Carrying out legal currency and virtual currency exchange business, exchange business between virtual currencies, buying and selling virtual currencies as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, virtual currency derivatives transactions and other virtual currency related Business activities suspected of illegal sale of tokens and tickets, unauthorized public issuance of securities, illegal operation of futures business, illegal fund-raising and other illegal financial activities are strictly prohibited and resolutely banned in accordance with the law. Those who carry out related illegal financial activities constitute a crime shall be investigated for criminal responsibility in accordance with the law.”
This has been their position for five years and nothing has changed except they say people in China that aid overseas companies that provide crypto services to the Chinese may be investigated. Again, what you’d expect.
Especially as this very PBOC has printed nearly $100 billion this week. $10 billion of it just today and another $71 billion in the past five days with more probably to come on Saturday.
To distract from this mass CNY devaluation and to dissuade Chinese citizens from escaping to safe havens fixed supply assets, like bitcoin, they just repeating themselves maybe in the hope Bloomberg twists their words to the point of fake news.
This same Bloomberg was complaining about “shady” crypto where fake press releases affect its price, and now seems to be engaging in shady itself.
Where China is concerned however, you’d expect them to be a bit more alert about people escaping their devaluation amid mass money printing, but there’s nothing they can do because bitcoin is peer to peer and can be traded as such outside any banking system, so it can’t be stopped.
PBOC acknowledges as much, saying crypto trading is rising in China. As you’d expect, because this printing may be just the beginning as 20% of China’s GDP in the property market finds itself in distress.