Why is China trying to kill off bitcoin?

A clampdown by the Beijing authorities sent the value of Bitcoin plummeting this week. But why is China opposed to these tokens? And could the opposition of the world’s second largest economy prove a fatal blow? Ben Chu investigates

Beijing is wary that the digitisation of cash could erode its control of the domestic financial system and the Chinese economy’s money supply (Getty)

Bitcoin has suffered a number of blows from various angles in recent weeks. There’s rising alarm over the cryptocurrency’s carbon footprint. Its most high-profile backer, Elon Musk, has wavered over it. But the most painful swipe came this week from the Chinese government.

Regulators in Beijing on Wednesday tightened restrictions on its domestic financial institutions, warning banks and other financial companies not to accept cryptocurrencies as means of payment and forbidding them from offering crypto-related services and products.

The new controls sent the traded value of the tokens down by as much as 30 per cent.