Bitcoin’s growing popularity is being felt across the world, and this is particularly evident in China—a country that sees a significant majority of the global bitcoin trading.
Digital currencies currently don’t have a legal status in China, although experts have been attributing the recent surge in the price of bitcoin to the hearty demand from the Chinese market due to fears of Chinese yuan devaluation. However, it appears that the Chinese government is starting to get with the times.
This week, the Chinese Ministry of Industry and Information Technology (MIIT) came out with a white paper that explores the applications of blockchain—the technology behind popular digital currency bitcoin.
The research paper, titled “the Blockchain Technology and Application Development Whitepaper,” details the applications of blockchain technology, especially in the finance sector. According to the paper, blockchain can be applied in several scenarios, such as supply-chain management, analyzing finance, entertainment, smart manufacturing, social welfare, education and employment.
Wang Zohongmin, vice chairman of China’s National Council for Social Security Fund, said blockchain has the potential to enhance payment channels.
“There’s no doubt that blockchain technology will be used in the social security system because of its valuable applications in the investment and management of social security funds,” Wang said, according to Cryptocoins News.
The research paper is the latest indicator of China’s changing stance on cryptocurrency and blockchain.
In June, Chinese media outlets reported that the Chinese government is planning on having a set of laws that will offer digital currencies a “legal status” in the country. The draft law, released as part of the People’s Republic of China General Principles of Civil Law, aims to consider cryptocurrencies as properties “almost on par with physical and financial assets,” meaning they will be under the scope of the civil rights related to property in general.
Current bitcoin price and trade volume
The price of bitcoin dropped to $627.5 early Friday morning, with a trade volume of $7.29 million.