A recent ruling from the Shanghai High People’s Court in China expressed its perspective on cryptocurrencies after declaring Bitcoin a virtual asset protected by Chinese law.
The Court stated that Bitcoin had economic value. Its official WeChat channel also announced that it has reached a consensus on bitcoin’s legal status in actual trial practice and designated it as a virtual asset.
In October 2020, Cheng Mou demanded that Shi Moumou refund a loan of one bitcoin (1 BTC) that he claimed to own. The defendant, Moumou, refused to refund the bitcoin. Thus, the case was brought to the District People’s Court.
Since the May 2021 mediation, the parties have agreed that the defendant would compensate the plaintiff at a discount from the Bitcoin’s value at the time of the loan.
Eventually, the case was transferred to the Shanghai High People’s Court.
New crypto precedent in China?
This new ruling might establish a new precedent for the stance of Chinese regulators on virtual assets.
Historically, the Chinese government has attempted to reduce energy consumption by discouraging the crypto trade and boycotting crypto miners. China outlawed all cryptocurrency transactions and mining within its borders in 2018.
In September, the People’s Bank of China said that commercial operations involving virtual currencies are unlawful. It also cautioned Chinese citizens that crypto trading could seriously threaten the security of people’s assets.
Digital Yuan expands to transport networks.
China has made progress in implementing a central bank digital currency (CBDC) with its digital yuan. Since its introduction, digital yuan use has increased, with Xiamen and Guangzhou being the recent cities to adopt the currency in the transportation sector.
The People’s Bank of China stated that the CBDC pilot program would be expanded to 11 more locations, increasing the number of cities participating in the program to 23.
