The Author of “Rich Dad, Poor Dad” Believes He Knows the Reason Behind China's New Crypto Ban

Kavya  |  Sep 25, 2021

Robert Kiyosaki, a well-known real estate investor and author of the best-selling financial literacy book “Rich Dad, Poor Dad,” has turned to Twitter to speculate on the reason behind China’s new ban on all crypto. 

This restriction comes after China began cracking down on cryptocurrency miners earlier this year.

Reason Behind China’s New Crypto Ban Shakes the Cryptocurrency Industry

Aside from real estate, Robert Kiyosaki chooses to hedge his finances against inflation by investing in gold, silver, and Bitcoin. 

Last year, he predicted the demise of the US dollar and shared his ideas on the future advantages of Bitcoin, gold, and silver with his army of Twitter followers.

He has now remarked on the Chinese Central Bank's new papers (PBOC). These documents, which declared all cryptocurrency transactions unlawful, were issued at the beginning of September but were only made public on Friday.

The PBOC statement sent the whole crypto market into the negative, pushing Bitcoin to plummet below $41,000 and Ethereum to fall below $3,000.

This was the second significant blow to the crypto market this week; the first came from China, when the second-largest home developer, Evergrande Group, was unable to pay back its $300 billion debt to shareholders, causing its stock price to fall. Second, this anti-crypto stance from the Chinese government.

“China Has Issued a Fresh Crypto Prohibition. “What Does It All Mean?”

Kiyosaki believes that by declaring crypto transactions (and therefore all crypto-related companies) illegal in the nation, the Chinese government and the PBOC are paving the way for the launch of their own CBDC known as DCEP (digital currency electronic payment) or digital yuan.

The US Federal Reserve has lately expressed interest in CBDC and has begun researching this potential. If the Fed issues the digital USD (the "Fed currency"), the American government will be in control, similar to that of China.

Previously, some on crypto Twitter thought that China would utilize CBDC to tighten control over Chinese people's bank accounts and have full data on their income and expenditures, etc.

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