The first case regarding Bitcoin as a commodity in China led to the Hangzhou Internet Court pronouncing it as virtual property. The court said Bitcoin has value, scarcity, and can be disposed, giving it the necessary attributes of a digital currency with inherent utility. China has been vocally critical of cryptocurrencies and the verdict here comes in stark contrast to the stance of the People’s Bank of China (PBOC), as reported by China Securities Network, June 18, 2019.
Positive Sentiment Resonates with Lawmakers
After the United States thrashed Libra and hyped up Bitcoin, Chinese courts have followed suit by publicly declaring Bitcoin indeed has value.
China is known for its authoritarian leadership, so this comes as a surprise to many involved in the space. Insiders in China pointed out that this is perhaps the first comprehensive discussion encompassing Bitcoin in a Chinese court. The judgment arising from this will help propel the strength of Bitcoin and other virtual currencies in the country.
An official from the PBOC confirmed that they believe Bitcoin is virtual property simply because it isn’t fiat. This may a signal that authorities in China are starting to accept Bitcoin and loosen controls over the digital currency. The official further confirmed that the issuance of a Central Bank Digital Currency (CBDC) is already in progress.
Within days, Bitcoin’s value has been acknowledged by certain American lawmakers as well as a Chinese court. China and the US are known for constantly taking opposing stances; needless to say, this has many people befuddled.
Is the Decentralized Revolution Finally Here?
In the last few days, Bitcoin has gotten a ton of free publicity from lawmakers and Facebook. The fact that almost all of Congress was apprehensive of Libra and some came to the defence of Bitcoin shows that lawmakers may prefer to allow a portion of trade to be directed to Bitcoin instead of allowing large tech companies to push financial innovation.
The difference between Bitcoin and Libra is obvious, even to someone with basic knowledge of both. Despite Facebook’s assurances in a letter to Congress as well as during their Senate hearing, regulators still seem to see the dangers outweigh the benefits.
Going forward, more countries may start to favour decentralized currency over corporate coins. It seems they’ve finally figured out that the entire ledger is transparent and privacy is not all that strong on the Bitcoin network.