China’s central bank is reportedly preparing a new set of stricter rules that will affect public privacy and personal information. The update will make nine significant changes regarding leasing services and other types of financial transactions, and the community has quickly brought up Bitcoin and its potential to be used freely in similar situations.
China Implements Strict Financial Rules
Local news outlet recently shared the updated version of the Chinese central bank’s personal credit report, which the research center has been testing since the end of 2019. According to it, the previous version only required basic personal information, which wasn’t enough to fight potential credit disruptions.
On the other hand, the new implementations will reportedly fix this by fully displaying academic, employment, and email information, as well as correspondence, and household registration addresses, and all personal mobile phone numbers. Moreover, the spouse’s data will also be needed in full.
Apparently, the more personal phone numbers each individual has, the more likely he or she is to be cheating the system, and the bank can deny them any services.
Additionally, the new version will require more information from public institutions, such as telecommunication businesses, water service payments, taxes, civil rulings, law enforcement, administrative penalties, and more. Originally, the update was going to come in effect in May, but new information states it will happen on January 20th.
The new set of rules is coming to “clean up” the Chinese loan system, according to another report. It informs that financial leasing companies would have to cap their noncore business assets at 40% and substantially double-down on their portion of risky assets. Those companies would also invest no more than 20% of net assets in fixed income securities under specific guidelines.
Bitcoin To The Rescue
As some people view the changes mentioned above as very restricting and even threaten Chinese citizens’ private information, the community quickly began highlighting Bitcoin’s benefits.
China’s new credit system which will come online in a couple of months makes financial freedom a hard pull… this is why Bitcoin matters, as not just a SoV but also MoE
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) January 10, 2020
The largest cryptocurrency is oftentimes regarded as a hedge (Store of Value) against political and economic turmoil. However, it could also have another critical usage – Medium of Exchange (MoE). As such, people can use its decentralized nature to execute peer-to-peer electronic payments anonymously.
On another note, Bitcoin is also censorship-resistant, meaning that no central authority can halt or deny access of an individual to it.