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China Dumps Dollar, Declares Bitcoin, Ethereum Legal Tenders

BY DAYO ADESULU

China court has on Saturday finally declared the controversial Bitcoin and Ethereum as asset protected by law, adding that it is now legal tender in the land.

A few days ago, the country also introduced its national cryptocurrency that would gradually face-off the Yuan which has been the fiat of China for years.

Recall on Friday that China surprised the world by deciding to cancel the dollar peg in the stock exchange transactions and decided to deal officially by using the Chinese yuan instead of the dollar.
The action portends that the dollar has become non-existent in Chinese trading indicating that the US dollar will fall strongly against the Chinese yuan.
”China plans a separate digital currency e-RMB, to take on fights with $. e-RMB, which is set to be the first digital currency operated by a major economy.
”A sovereign’s digital currency provides a functional alternative to the dollar’s settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company level,” China Daily reports

This no doubt has changed the narrative and repositioned the global trajectory of online business transaction that would make China emerged global power. That may be the New World Order.

Recall that in 2018, 2019, the United Nations in their general assembly unanimously agreed to jettison the cryptocurrency in every country which led to the fall in the price of Bitcoin from $20,000 to $5,000.  It has since assumed the bull trend when China declared national support for it.

Of course, if nothing is done to reverse the new acceptance of cryptocurrency as China’s legal tender, other countries in Asia, Europe would follow the trend.

If other countries follow China development, China would eventually displace the United States as the global watchdog, making the U.S powerless to sanction any country as it has lost its grip on countries through the weakened dollar.

READ ALSO: Cryptocurrency: Why We Buy Bitcoins With Our $1,200 Palliative – Americans

That Journey began on Saturday when a court in Shanghai, China, reportedly ruled that bitcoin is an asset protected by Chinese law in a case that has dragged on for years.

The case involves the theft of two types of cryptocurrencies, one being bitcoin, from an American. The defendants argued that bitcoin was not recognized under Chinese law; the court disagreed, citing documents by the central bank, the People’s Bank of China (PBOC).

Meanwhile, Shanghai No.1 Intermediate People’s Court has reportedly ruled on a bitcoin case that has dragged on for multiple years, Chinese media reported on Thursday.

The case involved three Chinese and a Malaysian who broke into the home of an American and his Chinese wife on the night of June 12, 2018, East China daily media Shine detailed. After locking the couple up and beating them, the intruders forced them to transfer 18.88 bitcoins and 6,466 skycoins to their account.

READ ALSO: Cryptocurrency Experts Expose Libra Coin Limitations Over Ethereum

The first hearing of this case found that there was an economic dispute and the perpetrators were sentenced to prison for six and a half months to eight months.

The defendants agreed to give all the skycoins back but not bitcoins, arguing that cryptocurrencies were not assets under Chinese law so the couple did not have the right to demand them back.

The court disagreed and ordered them to return all the cryptocurrencies they took from the couple or pay them what the coins were worth. When the couple received neither the bitcoins nor the equivalent funds, they filed a lawsuit.

The four defendants appealed, reiterating that cryptocurrencies, including bitcoin and skycoin, were not legal property under Chinese law. However, Shine news outlet reported on Thursday that the Shanghai court has ordered them to return the coins, adding:

The court found bitcoin to be a digital asset that should be protected by law.

Liu Jiang, the chief judge in the case, explained that the documents released by the central bank, the People’s Bank of China (PBOC), have never denied bitcoin as an asset and the laws in China do not prohibit citizens from holding them.

Several other Chinese courts have made a similar ruling on cryptocurrency. For example, the Shenzhen Court of International Arbitration recognized cryptocurrencies in a case involving 20 bitcoins, 50 bitcoin cash, and 13 bitcoin diamond in 2018. Last year, the Hangzhou Internet Court also legally recognized bitcoin. Recently, the Shenzhen Futian District People’s Court in Guangdong Province declared ethereum legal property in China.

A sovereign *digital currency provides a functional alternative to the dollar* settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company level,” last week’s China Daily report said.

 

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