China FOMO’ing Hard on Bitcoin: Is It the Beginning of BTC/Crypto Nationalization?
- China’s Merchant bank investing in Bitcoin wallet BitPie
- China’s most popular app offering a course on blockchain, containing bitcoin & ethereum
- China's major bitcoin hub must remain attractive to the crypto industry
- Emerging markets must have greater say in the regulation of crypto assets, China's senior official
China has gone full-in on Blockchain technology and by extension Bitcoin.
The latest news has been of a China Merchant Bank investing in BitPie, a Bitcoin non-custodial wallet with “longest history and most users in China.”
Bitpie is a multi-blockchain, supporting Bitcoin, Ethereum, EOS, and USDT among others, wallet. Apart from providing safe assets management, it enables its users to transact and use Decentralized Applications (DApps). It also has a built-in exchange and over-the-counter (OTC) trade service.
This partnership Dovey Wan, founding partner of Primitive Ventures says means,
All I can say is this to me it's a sign of begining of the nationalization of Bitcoin/Cryptocurrency related infra in mainland
Eventually, all things can be state-owned, or at least partially (mining, ASIC, exchanges, wallets, etc etc)
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) October 28, 2019
A Course on Blockchain, Containing Bitcoin & Ethereum
This news came on the heels of the country's President Xi Jinping talking about taking the leading position in the field of blockchain technology which led to a tremendous increase in interest in blockchain and by extension Bitcoin.
As we reported, the search trend from Chinese search engines like Baidu and also in WeChat has seen a significant rise in Bitcoin. Additionally, Chinese altcoins like NEO, Ontology, Qtum, and Tron have been riding this wave with massive gains in price.
Next year, the cryptography law that has been passed last week will come into effect as well. This law aims to provide a robust landscape for blockchain technology and making the country more competitive in the digital landscape.
As a result of President's blockchain talk, China’s most popular app, Xuexi Qiangguo now has a recommended course focusing on blockchain, containing Bitcoin & Ethereum lessons as well, reported cnLedger.
2/ China’s most popular app, Xuexi Qiangguo (study for becoming powerful nation) now has a recommended course focusing entirely on blockchain, which contains Bitcoin & Ethereum lessons. The app released by CPC to help ppl learn about its political doctrines like Xi's thoughts. pic.twitter.com/nRdCntNRAA
— cnLedger (@cnLedger) October 28, 2019
It further reported that articles that state blockchain technology as a scam are now banned. Blockchain-related stocks are meanwhile skyrocketing.
However, this has been brewing for some time now as, in late July, Bank of China posted an article about Bitcoin explaining how it works, why the price is going up and why it’s valuable.
China's major Bitcoin hub must Remain Attractive to the Crypto Industry
China’s local politician and member of a think tank, Yang Jiang, a former vice-chairman of the China Securities Regulatory Commission said China’s Sichuan province, a major BTC mining hub must remain attractive to the crypto industry.
The combination of bitcoin, blockchain, and surplus hydropower in the region should create more business opportunities in Sichuan, Sichuan Daily reported him as saying on Monday.
Currently, 70% of all BTC gets mined in Sichuan, said Jiang and,
“Blockchain can be involved in every industry. Its main application in the financial sector is digital currency with bitcoin as a key example.”
Hence, Jiang suggested they should dedicate efforts to further study how the region's hydro-energy can maintain its attractiveness to do crypto-related businesses.
Digital Assets’ Regulation
In other news, Li Wei, head of the People’s Bank of China’s technology department said on Monday that commercial banks should step up the application of blockchain technology to embrace digital finance.
Meanwhile, Sun Tianqi, chief accountant of the State Administration of Foreign Exchange (SAFE), said governments in emerging markets must have greater say in the regulation of crypto assets.
The fact that financial technology not only promotes innovation and development of a country’s financial market but could also bring illegal cross-border activities, is a “matter of great concern to all countries, especially emerging markets,” said Tianqi.
Government emerging markets, particularly those that enforce capital controls need to be aware of Libra’s implications, Tianqi said.
In China, a digital currency like Libra, he said must abide by forex regulations and mustn't replace the yuan currency or “it should be banned.”