Around the world, cryptocurrencies are fast threading along a relatively positive path towards acceptance, as governments and regulators are testing, deploying, and evaluating the integration of blockchain and cryptocurrency into their existing economic systems.
Country’s Redundant Crypto Laws
The world’s second-largest economy placed a blanket ban on cryptocurrencies in September 2017, igniting a massive sell-off in the cryptocurrency market presumably from Chinese investors. However, it is increasingly believed that a fundamental approach towards the technology will be the ultimate solution, eliminating the fear of putting the existing financial system in jeopardy.
As stated in the report, unconfirmed rumors started circulating in China after several central bank executives visited the former offices of Huobi, the world’s second largest cryptocurrency exchange by traded volume, in an effort to learn about the technology and possibly relaunch cryptocurrency businesses. However, Huobi’s CFO Zhu Jiawei dismissed the rumors shortly after.
While China is shunning businesses related to cryptocurrencies, it is creating an optimal environment for blockchain development, setting up a $1.6 billion “blockchain park” in the city of Hangzhou with the purpose of incubating blockchain projects and startups.
Hangzhou, China. The city is home to a $1.6 billion blockchain park
(Source: Hutong School)
The country undeniably embraces technology, and while cryptocurrencies are an innovative method of peer-to-peer payments, the asset class displays a wildly volatile nature, leading many to label it a “bubble.” From this perspective,