As the Chinese government is setting the stage to embrace digital currencies once again, the market is signaling another rush in the sector.
This time, major financial players are not shy to dip their toes in the wild industry as the China Merchant Bank reportedly invested in the crypto wallet platform BitPie.
The news was revealed by Dovey Wan, founding partner of Primitive Ventures, on Twitter earlier today.
China… China Merchant Bank just announced invested in BitPie, the Bitcoin wallet with longest history and most users back in China …
Tho it’s a non-custodial wallet there can be a non-zero chance ….[redacted] 🤐🤐🤐
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) October 28, 2019
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BitPie is one of the longest-serving Bitcoin wallet platforms in China. Through the crypto industry in the country remains in a blackout for over two years, the wallet platform successfully retained its customer base by relocating its base to Australia.
Reopening of a major market
On Friday, a speech by Chinese President Xi Jinping on adopting blockchain and digital currencies gave the sector a massive boost, both in terms of investment and trading.
“All I can say is this to me it’s a sign of beginning of the nationalization of Bitcoin/Cryptocurrency related infra in mainland, Wan added. “Eventually, all things can be state-owned, or at least partially (mining, ASIC, exchanges, wallets, etc etc).”
China was once the largest crypto market on the globe, handling the highest Bitcoin trading volume. However, the sector vanished overnight as the Chinese government put a blanket ban on initial coin offerings (ICOs) and centralized crypto exchange in September 2017.
Meanwhile, the communist country also passed a cryptography law to tackle emerging regulatory and legal challenges in commercial cryptography applications. The law will come into effect on January 1 next year and will pave the pay for the launch of Digital yuan.
Earlier today, Finance Magnates reported that the country’s forex regulator is studying blockchain and artificial intelligence (AI) to capture the cross-border financing market.