As the rise of the phenomenon of cryptocurrencies increases, it is getting increasingly difficult for countries to abstain from participating or acknowledging the existence of blockchain technology and the digital currencies it supports. As the popularity of Bitcoin and other cryptocurrencies increase, a greater number of governments are beginning to consider legislature allowing them to understand and, maybe, support digital currencies.
On May 30, 2018 Chinese state run newspaper Global Times, presented a counter opinion on the longstanding ban on the trading of cryptocurrencies in China. Since the start of this year, rumors have been circling that officials from the Chinese Central bank have been meeting with professionals from the country’s major crypto exchanges. The post on Global Times also admits that cryptocurrencies are an innovative use of blockchain technology as well as a creative form of payment. However, once again, the risks and at the same time the benefits of engaging with such a decentralized and unregulated type of currency are presented.
The ex governor of the People’s Bank of China – Zhou Xiaochuan – stressed that “virtual asset transactions” were not a part of Chinese policies regarding monetary products. Furthermore, it was asserted that to strengthen the Chinese economy it would be a wise decision to freeze cryptocurrency trading – at least for the time being.
However, even with all of the above mentioned reasons, it would still be impossible to completely remove the notion of digital currencies from the financial market due to its growing popularity. Thus, while the complete ban might remain in place for the time being, it will eventually need to be revisited and, perhaps, amended to serve an altered outcome.
In support of amending previous policies, the post also stated that fearing or ignoring the advancements of the digital currency domain would leave China at a disadvantage in this technological race. Which is why, it is important to view all the facts, understand the continued developments in the field, and create methods of introducing or incorporating these new, controversial currencies into their regulations – if China plans to become a part or a dominating force of this growing phenomenon.
Similar to Russian President Vladimir Putin’s stance about blockchain technology that can be read here, China also has to consider legislation to support the induction of cryptocurrencies, should the ban on their trading be lifted. From what can be gathered from the blog post, Chinese officials are definitively taking the right steps to understand the nature and the requirements of engaging with such an unregulated and – somewhat – risky form of currency. Yet, if they proceed cautiously and with a complete understanding of the workings of blockchain technology then they will definitely be another name entering the race to conquer digital currency.
Global Times is a tabloid, owned and published by People’s Daily – the official newspaper of the Chinese Communist Party. With an aim to present the events occurring in China to the world, the Global Time is China’s largest, internationally distributed and read digital newspaper.
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