China to Legalise Bitcoin Payments

China set to introduce legal framework for Bitcoin transactions (Image: news.bitcoin.com).

The world’s most famous cryptocurrency is about to receive a major boost as the latest reports claim that Chinese government is about to introduce a legal framework that will regulate digital currencies such as Bitcoin.

The new draft is a part of the China’s General Principles Civil Law and it will recognise cryptocurrencies as legal forms of payment, similar to physical and financial assets.

With increasing number of US banking institutions preventing transactions to and from online gambling websites, Bitcoin has become the main financial method for most US gamers, and it looks as though the world’s most populous country is ready to follow suit.

Gambling is also illegal in China, but due to the anonymity it offers users, Bitcoin could now provide Chinese gamers a perfect banking option for funding their online gaming exploits.

For the time being, digital currencies are illegal in the country, but the fears of yuan devaluation appear to have increased the demand for Bitcoin and in turn persuaded the government to seriously consider legalising the cryptocurrency.

Just a month ago, one Bitcoin was worth no fewer than $500, with 95 percent of all Bitcoin trading volume believed to involve yuan as an exchange currency.

Bitcoin Now Accepted in India as Well

Meanwhile, things have been moving in the right direction in India as well, where merchants are about to start accepting payments in Bitcoins and at the same time get the opportunity to receive payments in rupees (INR).

Indian merchants have been accepting Bitcoin payments for quite a while now, but they were not able to receive payouts in rupees, which is about to change.

Bitcoin and blockchain technology has been on the constant rise of late, with Reserve Bank of India considering blockchain as a way of reducing the usage of paper money.

With Bitcoin fully recognised as a payment solution in Japan, it is clear that Asia are slowly getting to grips with the latest developments in the banking industry, and the aforementioned legal framework in China should continue the upward trend.