Publicly issued on November 11, the report – which is filled with pro-Bitcoin remarks and details in the growth and potential of the coin – is a perspective-changing piece of work, regarding how China is still considered by many to be skeptical towards decentralized digital coins.
The report started by tackling the topic of what exactly is Bitcoin representing – “the inevitable trend of future currency development or just another ‘tulip’ hype?”
The report further outlined the key principles the role blockchain plays as a system that brings decentralization, immutation and trustlessness, to the P2P transfer of value, as well as provides support for different fields, nominally mining, digital scarcity and pseudonymity.
Xinhua also put a highlight on the volatility feature of Bitcoin in the form of a currency, which is not supported by a centralized sovereign – a major distinction compared to national fiat currencies.
China has been making initiatives towards increasing the adoption rate of blockchain implementations nationwide. The pro-blockchain attitude of President Xi lately has been backed by the introduction of the first bill – expected to apply from January next year – attempting at offering regulatory clarity cryptography across China, supervising numerous fields related to blockchain.
The People’s Bank of China is also expected to go down in history as the first major global economy to roll out a central bank cryptocurrency.