China has been one of the harshest countries with regard to cryptocurrency regulations and has given its citizens a very short leash. This hard-set attitude has made it difficult for people in the mainland to trade and hold cryptocurrency assets, while some have opted for offshore accounts, many still prefer using the little leeway their government allows.
The Chinese have clamped down on cryptocurrencies so much that they even forced a popular social media platform to shut down and warned its people that accounts related to cryptocurrencies would be watched closely.
Which is why the conversations that happened and the statements that were released at this year’s National People’s Congress comes as a long sought after reprieve to China’s people.
The central bank’s governor, Zhou Xiaochuan, in his press conference admitted the boom of cryptocurrency and the fast pace at which it is continuing to grow. He even went on to say that the world of cryptocurrency and cryptocurrencies themselves will eventually overtake fiat currencies, in terms of usage and importance.
The bank, however, is still not pleased or okay with the world’s first cryptocurrency Bitcoin and is continuously looking and finding new ways to regulate its use. Zhou went on to say that, for China to adopt cryptocurrency nationwide, first sensible and enforcing regulations must be availed and the technology must be subjected to trials in all regions.
Although outwardly, China has been quite harsh on regulations and statements, in 2017, the People’s Bank of China established a digital currency research institute. And has been working with the government to coerce the company into conversing with the world of cryptocurrency.
While the country is still apprehensive about accepting Bitcoin and other cryptocurrencies, it is said to be working on a digital currency of its own and is speculatively supposed to hit the market over the next year.
Regardless, the open statements being made about the acceptance of cryptocurrency and legalising their use is a giant step and a huge faith-restorer of sorts for investors in the country. And with China developing its own digital currency all eyes are on them to see how they plan to integrate themselves into the booming fabric of the cryptocurrency market.