• For the first time in a long time, Bitcoin appeared on the front page of a major Chinese news paper that reaches millions of people.
  • The article explains what Bitcoin is and how the technology behind it works.

 

The Middle Kingdom is making a U-turn in Bitcoin and blockchain technology. China banned trade, mining and the mere possession of Bitcoin and other cryptocurrencies from its own country. For several weeks, however, public opinion seems to have changed. President Xi Jinping praised the blockchain and its potential for China.

Big Chinese newspaper headlines about Bitcoin

According to CEO Matthew Graham of the Chinese blockchain company Sino Global Capital, Xinhua State Publishing House reported on Bitcoin under the title “Bitcoin: The first successful application on the blockchain”. The Chinese media have been reporting about the Blockchain and its potential for this new technology for China for several weeks.

The article shows both the advantages and disadvantages of Bitcoin and does not seem to be a rush or a one-sided positive report, but a well-researched report. The first lines describe that Bitcoin is not a normal currency:

First of all, Bitcoin is not a tangible currency. It is produced and operated on the Internet … [Unlike] banknotes [which are]supported by national laws and sovereign credit, Bitcoin is completely born in the modern technology Internet era.

It is also described in detail how the blockchain, mininig, Bitcoin halving and some other important processes work in detail. In addition, Bitcoin, according to the Chinese report, ensures good anonymity and protects the identity of the account holder. Furthermore, Bitcoin users can send money freely without revealing their identity information.

However, Bitcoin is also associated with the black market and money laundering, as well as some other hidden warnings (freely translated):

The price of Bitcoin is subject to large fluctuations. Bitcoin is just a bunch of data. If it is not associated with real money and material assets, it is difficult to ensure the stability of its price.

Irrespective of whether the content of the report is 100% true, these developments show that one of the world’s largest economies with over 1.4 billion people is slowly opening up to the subject. Some industry analysts see in these movements a long and well thought-out preparation of China’s own major project, the digital yuan.

Bullish momentum long planned?

As we have already reported, China has been working for 5 years on the development of a digital state currency, supported by the People’s Bank of China, which can replace the Fiat currency yuan. The release is planned for the first quarter of next year.

China will not ban the mining of Bitcoin as it has been removed from the list to be banned from next year. Furthermore, the largest supplier of Bitcoin Wallets from China has secretly pushed the development forward.

The current efforts could support or prepare the introduction of the digital Yuan. Overall, the Bitcoin community agrees that the latest news from China can be classified as positive.

The Bitcoin price continues to trend sideways (- 0.47%) and stands at a price of USD 8,851.79 at the time of writing.