Re:China Bans Bitcoin Executives from Leaving Country, Miner...
by dannyw on Wednesday September 20, 2017 @01:40AM
(#15291095)
The difference I think is that bitcoin allows someone with no connections to bypass capital controls. I'm not saying bitcoin isn't a rounding error, I'm sure other priorities (like ICO scams) are at work, but that might be another point.
Re:China Bans Bitcoin Executives from Leaving Country, Miner...
by jogjayr on Wednesday September 20, 2017 @02:43AM
(#15291325)
But someone with no connections would presumably not have that much capital to move either, right? They'd not move much volume even if they bypassed capital controls.
Re:China Bans Bitcoin Executives from Leaving Country, Miner...
by dx034 on Wednesday September 20, 2017 @09:23AM
(#15293427)
It can be dangerous though. If suddenly several million citizens start transferring small amounts you can easily get outflows of several billion USD a month. Done by a few that would be an amount easily noticed.
You can also invoice hundreds of millions in fake orders. This is how the bulk of exfiltration occurs.
Addressing the rounding error before the bulk means other concerns are at work. I am ignoring, in this argument, that recent policy—preceding these orders—calls for more capital export, to keep down the yuan.