China Construction Bank – one of the largest financial institutions in the country – is unveiling its new funding plan that will potentially allow the firm to raise more than $3 billion from bond sales. What’s the big clincher? People will be able to purchase these bonds with bitcoin and other forms of crypto.
China Bank Sees Bitcoin as a Potential Tool
China has had a very odd relationship with bitcoin and its altcoin cousins. On the one hand, bitcoin has potentially surged so much because the demand for the asset has been the largest within the nation’s borders. It is a leading country when it comes to blockchain innovation, and it also holds the upper hand when it comes to mining operations thanks to the presence of firms like Bitmain and Canaan Creative.
However, the country has also been rather unkind to the asset, going so far as to regulate virtually every aspect of the digital currency space and banning other portions such as initial coin offerings (ICOs) and similar ventures. It’s as if the country can’t seem to make up its mind about the digital currency: can it do wonders, or is it a dangerous tool that needs to be shut out immediately?
Clearly, the China Construction Bank has a positive feeling towards bitcoin. It may not even be that the bank likes bitcoin or favors it in any way… but it’s smart enough to know there’s a bitcoin audience out there will eat up an opportunity like this the moment it can.
The enterprise has recently established more than $50 million worth of digital certificates, the first batch of what will eventually be $3 billion worth. In addition, all certificates will be issued on the blockchain, making them the first to be distributed by way of DLT.
Henry Chong – chief executive of Fusang Exchange – explained in a statement:
The implementation of blockchain technology enables financial inclusion, reduces service delivery costs, and increases transactional efficiency… this will be the start of crypto 2.0 – the true institutionalization of digital asset products.
What Makes BTC So Big?
China presently makes up one of the largest bitcoin-devoted markets on the planet. In an interview, Flex Yang – chief executive of Babel Finance in Hong Kong – commented:
China has always encouraged the development and adoption of blockchain technology across industries but offers no recognition of bitcoin as legal payment. Its policy has not changed since 2017… What has been shaping Chinese demand for cryptocurrency, however, is that more bitcoins and mining machines have been bought by western trust funds such as Grayscale. The recent regulatory change in Hong Kong on licensing is a positive move for the industry. Together, with the development of crypto financial infrastructure including custodian and regulated crypto asset management funds, these efforts will pave the way for the entrance of institutional investors in Asia.