Recently, there has been a viewpoint that if China does not improve the digital renminbi, it will not have compliant cryptocurrencies, even if the 'plasma narrative' is appealing. This perspective actually has deep strategic logic and practical considerations behind it.
The digital renminbi is a legal digital currency issued by the People's Bank of China, and its promotion is a rigorous and systematic project. From a technical perspective, it is necessary to ensure the stable operation of the digital renminbi in various complex network environments, ensuring the security and immutability of transactions, which requires continuous technical testing and optimization. In terms of application scenarios, it is necessary to enable the digital renminbi to widely cover various fields such as consumption, investment, and cross-border payments, meeting the needs of different groups, which requires deep cooperation and coordination with numerous financial institutions, merchants, etc. Therefore, the improvement of the digital renminbi is not achieved overnight, but is a process of gradual exploration and gradual improvement.
In the context where digital RMB has not yet fully matured and become widespread, China's strict regulatory attitude towards cryptocurrency is based on multiple important reasons. The cryptocurrency market has extremely high volatility and uncertainty, with prices fluctuating greatly, which can easily trigger financial risks. Many cryptocurrencies lack actual value support and are more tools for speculation; once a bubble bursts, it can lead to huge losses for investors and may even trigger systemic financial risks.
At the same time, the anonymity and decentralization characteristics of cryptocurrencies make them easy to be used for illegal activities, such as money laundering, terrorist financing, and illegal fundraising. China's strengthening of cryptocurrency regulation aims to maintain the stability of the financial order, protect the legitimate rights and interests of investors, and prevent financial crimes.
As for the 'plasma narrative,' although it may have some innovations and highlights at the technical level, attempting to bring better performance and scalability to cryptocurrency, this does not change the risks and problems inherent in cryptocurrencies themselves. In China, financial security and national stability are top considerations, and before the legal digital currency system of digital RMB is firmly established, it will not easily open the door to compliance for cryptocurrencies that have high-risk characteristics.@Plasma 
China's strategy in promoting digital RMB and regulating cryptocurrency is based on a comprehensive consideration of national financial security, social stability, and the interests of the people, making it a rational and responsible choice.#Plasma $XPL
