China increases its pace towards cryptocurrency adoption with an accelerated usage of the digital yuan. The country is initiating blockchain pilot programs and a new law on the right to inherit digital assets is in place.
China is stepping up its transition towards the adoption of cryptocurrency with a significant increase in the usage of the digital yuan and the initiation of pilot programs for blockchain technology. The country now acknowledges cryptocurrency as a legitimate form of property, acknowledging the growing global trend of digital asset management.
A Steady Transition towards Digital Currency
In recent times, China has been making consistent strides towards the usage of the digital yuan, the official digital currency of the Chinese government. This digital currency operates on a pilot basis and is controlled by the People’s Bank of China. Reports have indicated that China has already processed transactions worth several million yuan using this digital currency.
Notably, China is not only focusing on the digital yuan but also other forms of digital currencies. The country is initiating pilot programs for blockchain technology in several sectors, thereby indicating a broader acceptance of this technology.
New Law for Inheritance of Digital Assets
In another major development, China has put in place a new law that relates to the inheritance of digital assets. Taking effect from January 1, 2022, the law stipulates that cryptocurrency and other digital assets will be classified as a part of a person’s property that can be inherited by their legal heirs. This law marks a significant shift in China’s stance towards cryptocurrency and takes into account the rising importance of digital assets worldwide.
The law is in line with China’s rapidly expanding digital footprint. The Chinese government is actively promoting the utilization of blockchain technology and digital currencies. By recognizing cryptocurrency as an inheritable asset, China is reaffirming that cryptocurrency is increasingly becoming a part of people’s wealth.
Positive Implications for the Crypto Industry
This development in China’s stance towards cryptocurrency is expected to have positive implications for the crypto industry. It potentially opens up a new market for cryptocurrency and blockchain technology. While China has previously shown reluctance in accepting cryptocurrency, the recent changes indicate a change in attitude.
Moreover, the new inheritance law also serves to provide a legal layer of protection for digital assets. This is particularly relevant considering the rising number of cases involving digital asset theft and fraud. The law provides a clear legal provision in case of disputes related to digital assets.
As China continues its transition towards digital currency, it is only a matter of time before it might become a leader in the global expansion of cryptocurrency. Its recent initiatives indicate a strong commitment to exploring the potential of this technology and leveraging its benefits.
