Billionaire investor and long-time partner of Warren Buffett, Charlie Munger, has recently drawn criticism from the cryptocurrency community for his comments about China's stance on Bitcoin. In a recent interview, Munger described the Chinese ban on Bitcoin as "wise" and stated that the cryptocurrency is "not a currency, nor a commodity, nor a security".
These comments have sparked a strong reaction from the cryptocurrency community, with many taking to social media to express their disappointment and disagreement with Munger's views. Many pointed out that China's ban on Bitcoin is not a reflection of its lack of value, but rather a response to the country's strict control over its financial system.
Some members of the community also highlighted the irony of Munger's comments, given his reputation as a traditional investor who is often skeptical of new financial technologies. They argue that his lack of understanding of cryptocurrencies and blockchain technology is preventing him from seeing the potential benefits they can bring to the financial industry.
But is China really opposed to blockchain technology?
China banned cryptocurrency trading and initial coin offerings (ICOs) in 2017 and outlawed all crypto trading and transactions in 2021 due to concerns over financial stability and consumer protection. Despite the ban, however, the Chinese government has expressed support for blockchain technology and is actively working on the development of a digital version of its currency, the yuan.
But that's not all because this CBDC is already being pilot tested in 17 provinces and will be taking an even bigger leap forward as the People's Bank of China will be enabling smart contracts in its CBDC through Meituan, one of the largest e-commerce and food delivery platforms in the country.
And yes, while CBDCs are most certainly not a cryptocurrency, China is also taking an interest in NFTs as we have mentioned in recent articles which many would argue has less utility than crypto. So while yes, China did ban cryptocurrency in the first instance maybe they were taking a more disciplined approach to the subject. Banning it all until they had the right regulatory framework in place and then open up to the industry little by little.
The gap between traditional investors and the young blood
The cryptocurrency community's reaction to Munger's comments reflects the growing divide between traditional investors and those who believe in the potential of digital currencies. While Munger's criticism may not change the minds of those who are deeply invested in the cryptocurrency space, it serves as a reminder of the challenges that cryptocurrencies still face in gaining wider acceptance.
What do you think, is this deep-seated distrust in crypto well-deserved after everything we've seen over the past year?
