China Is Showing Signs of Increasing Bullishness On Bitcoin
After introducing an outright ban on Bitcoin two years back in 2017, China is again warming up to the world’s largest cryptocurrency. China’s change in the outlook for Bitcoin comes just a time when the global economy is under stress and many experts have said that Bitcoin could be the best hedge in the time of financial distress.
According to the latest report from Forbes, China’s central - People’s Bank of China (PBoC) - has recently posted an infographic of Bitcoin explaining its working. This move comes soon after a local court in China gave Bitcoin an official status earlier this month to be considered as a virtual digital asset.
No doubt that these signs of China’s revival for Bitcoin is surely welcomed by the crypto community. Note that before the ban, China was the major contributor to the daily trading volumes of Bitcoin. The Bitcoin ban means that people in China can continue to hold cryptocurrencies, but cannot use them legally for swapping against the FIAT currencies.
However, Chinese investors are still actively involved in the crypto market through exchanges registered overseas.
But this shows that despite the repeated efforts from the Chinese government to crush Bitcoin and cryptocurrencies, they have still emerged victorious. But if at all, China is to open is doors back again for crypto investing, there’s no doubt to it that this will lead to massive crypto adoption going further.
Recently, China’s central bank has been closely monitoring the changes in the crypto industry and have also proposed some counter measure to the growing global competition.
Earlier this month, the PBoC said that it might consider having a state-owned digital currency to counter the competition posed by the announcement of Facebook Libra. Note that if cryptocurrencies are to be the future of money transactions, China won’t be staying back certainly and will take every effort to create a dominant position in the crypto game.
There’s still a long way to go before cryptocurrencies come to the mainstream as global regulators have an uphill task to bring globally compliant measures in place. It will be interesting to see where things are headed from here and how do the two economic giants - US and China - deal ahead with the crypto industry.