China's crypto economy: sacrificing opportunity for control?

Abstract

The rapid advancement of cryptocurrencies since 2009 has brought forth a new and innovative encompassing ecosystem – the crypto economy – in the form of the metaverse, blockchain technology, non-fungible tokens, cryptocurrency exchanges, secondary cryptocurrency trading businesses, and decentralised payment networks. The crypto economy also poses innumerable political and socioeconomic risks to China. Hence, Beijing has resolutely banned cryptocurrency activities to (i) enhance political and socioeconomic stability, (ii) strengthen its administration of state policies, and (iii) reduce its energy misemployment and environmental concerns.