China’s View on Bitcoin

Bitcoin - the most popular digital or crypto currency around the web has started its journey to the emerging economy of the Asian giant – China.
Bitcoin - the most popular digital or crypto currency around the web has started its journey to the emerging economy of the Asian giant – China.

Bitcoin - the most popular digital or crypto currency around the web has started its journey to the emerging economy of the Asian giant – China. Many observers and even simple users from the web believe that this interest is the main reason the behind the growth of the price for the BTC, which has heat 700 dollars and seems to gain points even further.

The most interesting thing to consider about the collaboration between China a pillar of planned economy with rather strict laws and norms and the decentralized doubtful considering legality, decentralized and fighting for liberty digital currency is the points of contact. Now after the progressive decision of the NASDAQ featured search engine located in Beijing – the Baidu Company – the crypto currency seems to be tolerated by the whole country, as well as their financial institutions.

During a meeting between student and financial specialists with the governor of the People’s Bank of China Yi Gang, a woman, calling herself an expert in internet finance and similar service asked the opinion on bitcoin and other digital coins. His idea is that currently knowing the background of the currency, as well as affairs of the black market behind, bitcoin can be considered as fully legal. But after Gang - it is not a problem to mine, to make deals, to receive and spend it. Everything is up to the user.

Far back, in the next year after bitcoins birth, the Government of Chine expressed its opinions a following – virtual, as well as digital and crypto currencies, can be spend only on the Internet, for products and services existing in the virtual world. It is prohibited to pay for physical products and services with these “artificial” types of money. By that time the biggest fraud was seen from the QQ currency used initially for gambling and games and run by the Tencent Holdings Ltd.

However the existence of the organization BTC China with the representative Ling Kang shows that the moods are changing and might change to the opposite. Bitcoin is not about gambling – it is about solving mathematical tasks and receiving money for that. Many people are already taking part in it in China. The more online and digital finance will gain in future - the more trustworthy will become bitcoin.

The financial sector of China has been long time under the supervision of the government and its financial institutions. Currently private services and companies received the right to enter this market. The only way for them to keep going is to offer something new, unbelievable to the customers.

Still not many officials themselves are ready to participate in the bitcoin and crypto currency market and community. Personally, Ling Kang asked whether he was or is investing in this segment of the virtual economy declined this possibility. A huge role in future will be played by the government – once the legislative basics will be positive a huge leap forward will take place for the bitcoin globally.