Bitcoin has long faced criticism from the mainstream financial world since its inception. But, lately, the traditional fiscal space seems to have softened its stance towards the leading cryptocurrency. A major proof of such change of mindset is evident from China Construction Bank’s latest tryst with Bitcoin.
As per the sources, the CCB has recently started selling 3 billion USD worth bonds which accept Bitcoin payments, added to USD payments. These bonds would be listed on Fusang, a regulated leading crypto exchange based in Labuan, Malaysia. This is for the first time a Sino bank has issued digital security on blockchain. It would allow digital asset traders to trade CCB’s digital certificates through BTC (BTC, +1.40 percent) on Fusang. The trading activities will commence from this week only, tentatively Friday, November 13, 2020.
CCB’s recent BTC activity certainly marks a historic moment for the Bitcoin community and the cryptocurrency industry overall. For one, China Construction Bank is the second biggest bank in the world, in terms of market capitalization. Then, CCB’s acceptance of BTC payments heralds the dawn of involvement of Chinese mainstream financial scene into the cryptocurrency arena. No wonder, crypto enthusiasts are extremely excited about China Construction Bank’s latest activities in the Bitcoin world.
“It’s a great moment for the crypto community to know that such an esteemed financial institution like CCB has started accepting BTC payments for its latest bonds. On one hand, CCB is the second biggest bank in the world and its acceptance of BTC payments signifies the mainstream financial world is gradually taking up a welcoming stance towards the crypto industry. Another thing is, CCB’s Bitcoin acceptance would also leverage BTC and cryptocoin industry’s status in the Chinese mainstream financial sector as well. CCB is one among the top 4 banks in China and chances are high that its proactive support for Bitcoin will inspire other banking institutions in the country as well”, stated Sydney Ifergan, CEO of The Currency Analytics.
Per the market reports, CCB deliberately adopted blockchain issuance this time with the mission to lower down costs usually associated with the financial intermediaries. The banking giant has also announced to extend debt instruments on lower prices to ensure easy accessibility for the retail investors.
It’s to stress here, bonds are major tradable debt securities which are issued by a company or the government to support the spending obligations. Now, the Chinese bonds are generally traded in the market for thousands of Yuan (4,000 USD+) and such high prices generally limit them to high profile professional and institutional investors mostly. In other words, they are usually unaffordable for small to medium scale investors like retail investors.
China Construction Bank is on its way to lower down the barrier for the small to medium scale investors by offering certificates at as low as $100. It will offer a solid .75 percent yield on maturity which is definitely higher compared to the average rate of .25 percent interest (annually) offered by other banks.
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