<< The People’s Bank of China (PBOC) has said that as cryptocurrencies don’t form a part of the payment system, the cryptos such as Bitcoin, Ethereum etc cannot be circulated in the market. >>
China is releasing their own crypto called the digital yuan. They are eliminating all of the other competition.
In the same light, US Banks are losing money because customers are removing dollars and buying stablecoins. Banks don't like that they are losing money and they are pressuring the US government to go after exchanges that make stablecoins.
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