China’s Odd Move Instills Confidence in the Future of Crypto
The state-owned Bank of China posted a pro-bitcoin infographic on its website on July 26. The infographic humorously illustrates some important milestones in the development of Bitcoin: the publication of its white paper in 2008, the mining of the first 50 BTC in 2009, 10,000 BTC spent on two pizzas by Florida resident Laszlo Hanyecz in 2010, among others.
After covering basic information about Bitcoin, the Bank of China website noted that Facebook is developing its own cryptocurrency, Libra.
The website also shed some light on the reasons behind the price spikes seen by Bitcoin. According to the bank, Bitcoin’s value continues to appreciate due to its finite supply of 21 million, and it may serve as a store of value, especially for citizens of countries suffering from high levels of inflation.
What’s even more bizarre is that the bank pointed out Bitcoin can get you married as well. In a funny illustration, a woman accepts a man’s marriage proposal after she discovers he has Bitcoin.
This is the latest indication that Beijing’s skepticism of cryptocurrencies is retreating. Chinese authorities have been showing signs of willingness to embrace the digital tokens in the past few months. The crypto ban is now a thing of the past in China, as virtual currencies have been legalized as a mode of payment by the Shenzhen Court of International Arbitration. On July 18, a court in Hangzhou, China ruled that Bitcoin qualifies as “virtual property”, which reaffirmed the nation’s stance that it’s legal to own the pseudonymous cryptocurrency. The court also said that bitcoin holders are entitled to legal protection in disputes.
Huawei, one of China’s tech giants, has also been making significant inroads in the blockchain business, such as joining the Hyperledger consortium and releasing a blockchain-backed cloud service, just to mention but a few.
China, home to the world’s largest population, is projected to overtake US as the largest economy in the coming years. The shift of attitude by Chinese authorities paints a bright future for Bitcoin and other cryptocurrencies, heralding wider adoption of crypto as a payment method.
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