China’s virtual yuan has been in development for the past 7 years (since 2014). Recently, Chinese officials had noted that Bitcoin (BTC) was not really a currency but they do think it’s a form of investment.
Regulators in China are also eager to explore the use of crypto-assets and their underlying blockchain or distributed ledger technology (DLT). During the past few years, the nation’s research communities have been developing rating systems for digital asset projects and have also been carrying out pilots of the digital yuan in major cities like Shanghai and Shenzhen.
Notably, Chinese lawmakers have now begun arguing that Bitcoin, Ethereum (ETH), and other virtual currencies are not an effective medium-of-exchange. However, they do believe they can serve as a type of investment, as long as they are able to provide real value to the economy and are not being used to engage in speculative trading.
The dramatic increase in the mainstream…