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I disagree. This is not good news for Bitcoin. >3. At this stage, financial institutions cannot denominate services and products in bitcoin, cannot trade bitco

by jval 13y ago

I disagree. This is not good news for Bitcoin. >3. At this stage, financial institutions cannot denominate services and products in bitcoin, cannot trade bitcoin, cannot run bitcoin exchange, cannot provide bitcoin related services, cannot store bitcoin for clients, cannot establish bitcoin trust or fund, etc. I don't speak Chinese so I can't speculate too much, but by the sounds of the Reuters article this basically rules out any hope of a Coinbase equivalent emerging in China, allowing people to transact freely between their bank and their BTC wallet. Banks in China aren't going to touch Bitcoin, or BTC-related businesses with a barge pole now. Not only this, anyone else planning on starting a Bitcoin business will probably have trouble with banks. It's really not good at all for BTC in China.

pacofvf 13y ago
I disagree with you, I think that it means that a chinese Coinbase can't also be a bank, and since they just ruled that bitcoin is not a currency, it will be sold and bought freely as a commodity in this case a virtual commodity
- alttab 13y ago
  Trading physical goods for virtual commodities? No thank you. The pudding of bitcoin was the promise of a new currency.
  - pitnips 13y ago
    Since it's decentralized, it doesn't need banks to prosper. That's the beauty of bitcoin. It can function as a currency while still being seen as a commodity in the eyes of the law.
    - fragsworth 13y ago
      Yes - it doesn't need banks. I think there is lots of confusion as to how this system works. As long as it's legal to own and exchange bitcoins, everyone can be their own financial institution.
      - alttab 13y ago
        I think I cant understand what a world run on bitcoin would look like without a global war.
yapcguy 13y ago
I kind of agree. The Chinese like to gamble, so something rocketing up was bound to attract speculators. Some people claim this move is to prevent capital flight from China, which is possible, but unlikely given the volatility of the BTC-USD exchange rate and the need for someone trustworthy i.e. family to be on the receiving end of the transaction who then needs to liquidate and remain tax compliant (if applicable).

by jval 13y ago

pacofvf 13y ago

I disagree with you, I think that it means that a chinese Coinbase can't also be a bank, and since they just ruled that bitcoin is not a currency, it will be sold and bought freely as a commodity in this case a virtual commodity

alttab 13y ago
Trading physical goods for virtual commodities? No thank you. The pudding of bitcoin was the promise of a new currency.
- pitnips 13y ago
  Since it's decentralized, it doesn't need banks to prosper. That's the beauty of bitcoin. It can function as a currency while still being seen as a commodity in the eyes of the law.
  - fragsworth 13y ago
    Yes - it doesn't need banks. I think there is lots of confusion as to how this system works. As long as it's legal to own and exchange bitcoins, everyone can be their own financial institution.
    - alttab 13y ago
      I think I cant understand what a world run on bitcoin would look like without a global war.

yapcguy 13y ago

I kind of agree. The Chinese like to gamble, so something rocketing up was bound to attract speculators. Some people claim this move is to prevent capital flight from China, which is possible, but unlikely given the volatility of the BTC-USD exchange rate and the need for someone trustworthy i.e. family to be on the receiving end of the transaction who then needs to liquidate and remain tax compliant (if applicable).