China’s Cyberspace Administration Acknowledges Bitcoin, Price Goes Up

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by Tatsiana Yablonskaya · 3 min read
China’s Cyberspace Administration Acknowledges Bitcoin, Price Goes Up
Photo: Akwan Architect/Flickr

In its last publication the Cyberspace Administration of China claims we have entered the “post-Bitcoin era”.

Earlier this week Bitcoin went up to $250. Such price boost hasn’t been seen since August. Price variations are caused by some more global events as a rule – let’s remember Greek crisis for example.

Bitcoin reached its peak of $273 then and many bitcoin experts believed that the cryptocurrency was able to serve as a way out of difficult economic situation in the country. Nevertheless once the agreement between Greece and Euro zone was reached, bitcoin price fell below a $300-level.

Current increased interest in Bitcoin sends us to look for the reasons in China. The Cyberspace Administration of China (CAC) published a report on October 13 which tacitly authorizes the use of Bitcoin. The CAC admits that it can no longer ignore the “revolutionary changes” Bitcoin and blockchain can offer even if people still don’t fully trust the digital currency underlining its unstable nature.

The CAC takes into account the decision of the United States Commodity Futures Trading Commission (CFTC) to officially consider Bitcoin a commodity. Despite the fact that banking regulations are only proposed to include third-party bitcoin transfers, real measures haven’t been taken yet, this idea “will promote economic regulation of electronic money.”

Providing regulated environment for Bitcoin can help to deeply study the cryptocurrency as a payment instrument which will contribute to further positive development of electronic money.

The CAC highlights the potential of blockchain in its publication. “Blockchain provides a decentralized technology for various industries such as finance, including a way to establish information verification”.

The Administration couldn’t ignore increased interest in Bitcoin observed in Europe. Large banks and financial organization start paying heed to blockchain. The European Banking Association (EBA) said in its last report that “blockchain technology can lower costs, improve product supply and improve the speed of transaction settlement.” Thus no wonder that Bitcoin underlying technology gets more and more attention from traditional financial sector.

There is one more point of view supposing that Bitcoin price boost could have been caused by recent events and developments in this sphere in the USA. Some believe that one of the most significant contributions has been made by Winklevoss brothers. In the beginning of October they opened Bitcoin exchange Gemini.

In his interview to IBTimes Tyler Winklevoss expressed confidence that “the positive price action can be created if more money comes into Bitcoin and starts using it as a financial instrument.” In terms of bitcoin future Gemini is believed to be able to act as a catalyst for the market.

Bitcoin News, Blockchain News, Cryptocurrency News, News
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