China’s Shenzhen Special Economic Zone Now Backs Digital Currency Research
The Chinese Communist Party has included a mandate for digital currency research in a new set of guidelines on the scope of the Shenzhen Special Economic Zone.
According to AMBCrypto the Shenzhen Special Economic Zone will carry out pilot reforms of market access and regulatory system mechanisms, start a more flexible and prudent as well as inclusive regulatory system actively develop new industries and new formats such as smart economy and healthy industries, and build a pilot zone for digital economic innovation and development.
The guideline also indicates that the zone will also enhance the economic ability of financial services entities, research and improve the GEM listing and listing, refinancing and mergers and acquisitions restructuring system, and create conditions to promote the reform of the registration system.
Shenzhen City, which shares a border with Hong Kong, became China’s first ‘Special Economic Zone’ in 1980. In Chinese Special Economic Zones companies are allowed to operate without much of the red tape and regulation that comes with doing business in other parts of the communist country. There are also significant taxation and other incentives aimed at attracting foreign investment into the economic zones.
The Communist Party’s digital currency mandate for Shenzhen is another indication of its changing attitude towards cryptocurrency.
The move comes at a time when the neighboring Hong Kong, a Chinese territory, remains embroiled in its 11th week of pro-democracy rallies. There have been calls in Hong Kong to withdraw money held in the bank and invest it in cryptocurrencies.
Recently, the Chinese Government revealed it has its own digital currency ready to launch after five years of development, however, it remains unclear whether the currency will be blockchain-based.
The shift in attitude towards cryptocurrency has been recognized by a number of cryptocurrency experts, including Circle CEO, Jeremy Allaire who said that it was clear that the country has been on the path to soften its stance on crypto.
China had previously banned the use of cryptos in its economy and the latest developments are good news to crypto worshippers in the country.