China’s Bitcoin Ban and the Global Shift in Financial Power

 China’s Bitcoin Ban and the Global Shift in Financial Power

China has maintained a strict ban on Bitcoin and cryptocurrency trading for the past several years, intensifying its efforts around 2021. The main reason? Capital control. 

The Chinese Communist Party (CCP) does not want citizens using crypto to move wealth offshore, especially as it pushes its Digital Yuan—a central bank digital currency (CBDC) meant to rival the U.S. dollar in global trade.

                                                          China Bans Bitcoin 

This strategy is part of China’s long-term plan for de-dollarization—reducing global dependence on the U.S. dollar. However, geopolitical events like the Russia-Ukraine war and the resurgence of U.S. nationalism under figures like Donald Trump have complicated things. Trump has hinted at linking Bitcoin and gold to the U.S. dollar as strategic reserves, potentially boosting Bitcoin’s legitimacy as a global asset.

While China rejects Bitcoin, other major players in the BRICS+ alliance—including Russia, India, Brazil, and Iran—are increasingly open to it. Russia, under heavy Western sanctions, views Bitcoin as a way to bypass the dollar-dominated financial system. 

This leaves China in a tough spot: it can't fully isolate itself if its allies embrace crypto.

The future of Bitcoin may depend on how global power blocs evolve—and whether the next move is economic warfare or a step toward World War III. .