Will China allow cryptocurrencies in the future???

In the 1980s, a group of young men and women were executed for so-called "hooliganism." Looking back now, many of those cases wouldn't even count as crimes. That's how times change—what's rejected today is often accepted in the future, even becoming a trend. Cryptocurrencies are the same. Their survival isn't just hype; it's because they truly solve problems of cross-border transaction security and efficiency, and they meet the needs of the global gray and dark web economies—these are things no single country can simply dismiss at will.

Why are we cracking down so hard right now?
It's not because cryptocurrencies are inherently bad, but because the economic structure doesn't allow it.

Simply put:
Domestic asset prices are much higher than overseas, creating massive pressure for capital outflows under capital controls; the economy is also in a downturn, so we have to rely on credit expansion to prop up assets. In this context, crypto is like poking a hole directly in the asset bubble, accelerating capital flight. For financial security, this is an explosive device, so strict regulation is the only option.

Once the domestic asset bubble has cleared, the gap between domestic and foreign asset prices narrows, and the pressure for outflows drops, RMB internationalization will naturally move forward again. At that stage, following global trends and loosening or even opening up to cryptocurrencies will be normal.

The key is—we're currently in the balance sheet recession cycle described by Richard Koo.
Since 2021, debt-driven growth has hit its limit; adding more debt actually drags down growth. As a result, companies are deleveraging, real estate prices are being corrected, and local government debt is blowing up—none of which will be solved in a year or two. It took Japan from its 1991 crash until 2006 to recover, and here we're also facing a global recession, population decline, and supply chain outflows, so the cycle will only be longer.

So, for a long time to come, cryptocurrencies will not be opened up in China.
It's not that the direction is wrong—just the timing.
The big trend won't change; it's only a matter of pacing.