China’s strict Social Credit System increases the need for Bitcoin in China
The Chinese government has gained full control over the country after implementing the Social Credit System. Because of this strict social credit system, people of China will less rely on fiat money and will move their attention to Bitcoin.
The government keeps controlling its people and now it has gained access to credit and online transactions. People will be able to get access to financial benefits on the basis of their social scores.
According to the report of XinhuaNet, in this updated social credit system, the Chinese government will take into consideration some of the factors in order to allow people with social scores. These factors include fake divorces, defaults on paying bank loans and acquiring multiple loans from several banks at the same time.
The Primitive Ventures founder Dovey Wan says in a Tweet that the administration will restrict people’s access to credit.
Authority to increase Surveillance and Censorship
After updating the social credit system, the Chinese government has enabled the authority to increase its censorship and surveillance.
The Ministry of Industry and Information Technology (MIIT) will use Artificial intelligence in order to monitor all internet users in the country. All online transactions will have to go through facial recognition. The government will use AI system to cross-reference the faces of users. In this way, the government will be monitoring the whole online activity.
Bitcoin to play its role
The need of the world’s leading digital asset has increased after the implementation of the Social Credit System by China. Chinese people cannot rely on fiat money therefore Bitcoin will play its role as a medium of exchange for Chinese people.
While using bitcoin, people will remain anonymous. Therefore, the government will not be able to keep its eye on them. So, it is expected that people will direct themselves toward the leading digital asset.
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