Illegal cryptocurrencies have already perfectly circumvented foreign exchange controls to a certain extent. If cryptocurrencies are legalized, they could even directly undermine the Golden Tax Phase IV.

If you sell a house in a first-tier city and receive 5,000,000 in cash, and you want to exchange this money for 700,000 USD to transfer abroad.

The bank has a limit of 50,000 for currency exchange, and the remittance also has a limit of 50,000, which is a double insurance, taking 14 years to complete the transfer.

If you use someone else's quota to exchange for USD cash and carry it out personally, carrying more than 5,000 will trigger regulation.

If you use someone else's quota to transfer to your offshore card, if it exceeds 3 people, you will be monitored. If you want to carry RMB out of the country and then exchange for foreign currency, the personal carrying limit should not exceed 20,000.

If you want to remit RMB abroad, sorry, you can't send out a single cent. All the legal paths you can imagine are blocked. So, back to cryptocurrency.

If there are no limits, it can be perfectly circumvented. If there are limits, assuming a reference foreign currency of 50,000 USD, you can utilize someone else's quota. Fourteen people can help you exchange 5 million RMB, then put it on a USB drive and take it abroad. As long as you don't say anything, no one will know.

In summary: Cryptocurrency, in a sense, is close to a general equivalent of precious metals. It has properties similar to precious metals: decentralization and anonymous transactions, which leads to a completely uncontrolled state for centralized national finances.

With the progress of the times, precious metals have gradually withdrawn from circulation, mainly due to physical laws at play. Compared to fiat currencies, they are too inconvenient. However, cryptocurrencies are not bound by physical laws and are almost as convenient as payment platforms like Alipay and PayPal.

Even if we set aside the issue of foreign exchange control, if everyone really uses cryptocurrency, the Golden Tax Phase IV would become a joke. Who can endure that?

#China-US trade negotiations $BTC