TAIPEI, Taiwan - Following the announcement by the Chinese central bank that Bitcoin would not be permitted as legal tender, a Taiwanese company has stepped up efforts to capitalize on the vast mainland market's potential electronic commerce revenues denominated in the fledgling digital currency.
The People's Bank of China stated that it does not recognize Bitcoin as a currency, and that no legal status as tender will be granted to the digital currency. Consequently, no financial institutions or payment processing services may conduct transactions denominated in Bitcoin, in addition to any trading and supplying of the digital currency. Insurance policies that cover Bitcoin as assets are also banned, according to reports.
In light of the digital currency's fate in the mainland market, Wayi International Digital Entertainment (華義國際) stated its Wmall electronic commerce portal will fully support Bitcoin-denominated transactions beginning next year. According to the company, suppression of the digital currency in China will disperse shoppers toward Taiwan.
According to Wayi, the Bitcoin ban in China will be beneficial to the digital currency's development internationally, as the ban will significantly curb speculative forces originating from the mainland, contributing to much of the wild volatility it has seen recently. A more stable Bitcoin will better ensure the interests of its users, said the company.
Wayi is also anticipating the multitudes of consumers holding Bitcoin in China, saying that they are expected to flock to its Wmall, based on proximity and the lack of language barrier in comparison to more international platforms. It is highly unlikely that shoppers holding the currency will not seek alternative outlets, remarked Wayi while hinting at an impending windfall of new activity from China-based Bitcoin-using consumers.