Tough measures to suppress cryptocurrency will help the Chinese authorities strengthen the digital yuan. By banning “anonymous” money and replacing it with its own digital currency, the party hopes to regain control of the market.

Unwilling to lag behind other advanced economies, China began to widely adopt cryptocurrency almost immediately after its inception. In 2011, just two years after the emergence of bitcoin, the first cryptocurrency exchange opened in the country. By 2016, China had become a very influential player in the industry, being both a hub for token trading and a major manufacturer of mining hardware. However, over time, it became obvious to the PRC that the popularity of cryptocurrency is primarily due to the ability to carry out decentralized and anonymous transactions. This feature did not fit into the policies of party chairman Jinping to govern the digital economy.