China declares it has entered the post-Bitcoin era

While many media and financial experts have pointed out that a large amount of cash has flowed from China to Western Bitcoin exchanges due to the recent rise in Bitcoin prices, among other reasons, China's Internet regulators have announced that they will no longer ignore this revolutionary change, declaring that they have entered the post-Bitcoin era.

Now it seems that Chinese law enforcement and government agencies are beginning to soften their stance on digital currencies. According to documents from the Cyberspace Administration of China (CAC), the government appears to have tacitly approved the use of Bitcoin, as well as Bitcoin-based startups and exchanges.

In a recent publication on the subject, the CAC mentioned that the U.S. Commodity Futures Trading Commission (CFTC) has formally defined Bitcoin as a commodity, and its banking regulator’s recognition of Bitcoin may advance the process of regulating economic activities related to electronic currencies.

The publication also added in part:

Although some people think that Bitcoin and its blockchain technology are not stable enough, the revolutionary changes it has brought to payment cannot be ignored. The root cause is that the development of the Internet and new technologies has brought about the expansion of distributed payment and clearing mechanisms, which in turn may promote innovation in distributed financial transactions.

In addition, CAC firmly believes that the post-Bitcoin era will bring digital currency attributes including Bitcoin, which will be closer to real currency through its safe and reliable core functions and technical mechanisms. CAC also cited that major European banks have begun to contact digital currencies and are paying more and more attention to them.

The technology has recently received more and more attention from the traditional financial industry. Read the translated text, for example, according to a recent report from the European Banking Association (EBA), blockchain technology has the potential to reduce costs, improve product offerings, and increase speed.