GAC Aion announced its support for Bitcoin and then “accidentally” touched the central bank’s red line

On December 31, a Weibo post by GAC Aion, a state-owned enterprise, about accepting Bitcoin as payment sparked heated discussions in the industry. In the past, the Chinese central bank banned the use of Bitcoin as a currency payment. However, in other developed countries, cryptocurrency is a common means of payment, but there are few users.

At 10:30 a.m. Beijing time, GAC Aion announced that it had become the first Chinese automaker to accept Bitcoin as payment for car purchases. At around 12:00, GAC Aion modified the text and images on its Weibo post, changing Bitcoin to digital currency. At around 12:30, GAC Aion deleted the post.

As soon as Wu said blockchain saw this Weibo post, he predicted that it would most likely be stopped and deleted. The core reason is that although Bitcoin and other cryptocurrencies are widely used for payment in various countries around the world, they are one of the biggest red lines strictly prohibited by the central bank in China.

As early as 2013, the People's Bank of China and five other ministries issued the "Notice on Preventing Bitcoin Risks", which clearly stated: By nature, Bitcoin is a specific virtual commodity that does not have the same legal status as currency and cannot and should not be circulated and used as currency in the market.

In September 2017, the People's Bank of China and seven other departments issued an announcement on preventing the risks of token issuance and financing, which once again emphasized that the tokens or "virtual currencies" used in token issuance and financing are not issued by monetary authorities, do not have monetary attributes such as legal tender and compulsory nature, do not have the same legal status as currency, and cannot and should not be circulated and used as currency in the market.

In 2018, Zhou Xiaochuan, then governor of the People's Bank of China, stated at a press conference that the central bank currently does not recognize the use of virtual currencies such as Bitcoin as a payment tool , and banks do not accept or provide related services.

On October 23, 2020, the draft of the Central Bank Law was publicly solicited for comments. Article 22 states that no unit or individual may produce or sell token tickets and digital tokens to replace the RMB in circulation in the market. The key point is whether the RMB cannot be substituted, that is, whether it is possible to appear in the market on a large scale in a role similar to "legal currency" for people to consume and exchange.

To some extent, the People's Bank of China, as the competent monetary authority, regulates all types of financial stability, including cryptocurrencies. This is different from other countries where cryptocurrencies are managed by different departments such as the China Securities Regulatory Commission. This may lead to the People's Bank of China, the regulator of cryptocurrencies, to be extremely concerned about the challenges or impacts on the RMB.

NIO, a US listed company, responded immediately: NIO has never had a "Bitcoin car purchase" plan. GAC NIO is an independently operated company jointly invested by GAC and NIO. Neither GAC nor NIO's two parent companies send management personnel to this company, nor do they participate in business management. GAC NIO is the name of the company, and the product brand it produces is called Hechuang. It will not produce GAC or NIO brand products. In short, NIO is just an investor, and the two parties have no other relationship.

Jiemian News asked the customer service on the GAC Aion APP and learned that "according to the relevant departments, new digital currency payment methods will be added in the future based on actual conditions. Please pay attention to the official publicity for specific details."

Although the use of Bitcoin and cryptocurrency for payment is a red line for the Chinese central bank, the use of cryptocurrency for payment is already common in developed Western countries. As early as 2014, PayPal announced that it would cooperate with three top Bitcoin payment service providers to sell virtual goods such as music, games, and ringtones.

This year, PayPal announced that it will allow users to buy, hold and sell a variety of cryptocurrencies including Bitcoin on the platform. 26 million PayPal partner stores will accept PayPal payments in cryptocurrencies by early next year.

In Hong Kong, Singapore and other countries, there are not many restrictions on Bitcoin and cryptocurrencies as a means of payment. Binance said that its platform currency BNB can already realize payment functions in various stores in Singapore, whether it is hotels, restaurants or shopping malls, BNB can be used for payment, and the future development plan is to cover 25 countries and regions in 2022.

The largest overseas cryptocurrency payment company is BitPay, which was founded in 2011. Amazon, Microsoft and other companies have connected to its payment channels. Alchemy Pay, incubated by Sequoia-invested Chinese company Qianfanghaojin, claims to have more than 1 million potential merchants in Southeast Asia and other places. It has also obtained Singapore's PSA exemption and can temporarily engage in domestic transfer and merchant collection services in Singapore.

Of course, due to the high volatility of cryptocurrencies, few ordinary people, except for crypto geeks, actually use them as a means of daily payment. Cryptocurrencies are more often used for cross-border remittances in countries with severe foreign exchange controls and inflation. For example, foreign workers in many African countries often use cryptocurrencies for remittances.