update 18 August 2021

China on Expanding Cryptocurrency and Blockchain Application

According to the Chinese government, there may be changes in the way it treats cryptos like Bitcoin as it is looking forward to reforming its forex markets.

On December 24, a report by Reuters cited a senior government official and explained that a fresh research initiative will involve expanding the blockchain cross-border financing pilot platform of China. The platform was introduced in March 2019 and it is at the moment functioning as a pilot scheme in nineteen provinces.

Lu Lei spoke about the platform, the commitment towards gradual expansion of the pilot, including the application scenarios of blockchain technology in cross-border financing and macro prudential management.

According to Lu, the authorities will try to initiate a potential study on foreign exchange in dealing with cryptos and look into the development of foreign exchange regulation, as well as technology system within the context of the new situation.

China is preparing to introduce its CBDC and its central bank maintained that its features are going to be different from BTC. According to Mu Changchun on December 22, the CBDC is not for speculation and it is not the same as BTC or stable coins that are utilised for speculation or need to be supported by some currencies.

China prohibited operations relating to cryptos not controlled by the government, especially exchange, under a policy passed in September 2017.

Nevertheless, Lu refused to specifically mention how the new reforms would influence the current situation.

Despite this, the government is still working on how to propagate and expand the use cases of blockchain. In recent times, they have adopted the technology for bond issuance.


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Featured image courtesy of Shutterstock. Source: CryptoPress.