China’s ICBC Bank praises cryptocurrencies and labels Ethereum as “digital oil” – DiarioBitcoin

In addition to giving an interesting qualification to Ethereum, The reports highlight the growing interest of Chinese banking entities in the main cryptocurrencies on the market.

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• Bank ICBC from China expresses its interest in cryptocurrencies
• After comparing to Bitcoin with gold, qualified Ethereum like digital oil
• They consider that this currency and its network have been drivers of many Web3 applications
• Despite the restrictive measures of the Chinese government, it seems that banks are interested in digital currencies

He Industrial and Commercial Bank of Chinabetter known by its acronym as ICBC, publicly expressed his support for Bitcoin and towards Ethereum pointing them out as remarkably valuable assets in the face of the current financial landscape. And although he referred to the main cryptocurrency as digital gold, He described his main competitor as the equivalent of oil.

Ethereum It is digital oil for the ICBC

The posture of ICBC towards cryptocurrencies came to fruition in a report released by the director of the digital assets area for VanEck, Matthew Sigel, who shared an excerpt from the document published by the Chinese bank and commented the following:

Chinese state banks continue to write love letters to Bitcoin and Ethereum. Here the ICBC bets on ‘digital oil’ [refiriéndose a Ethereum].

In the screenshots shared by Sigel, the bank’s position in relation to these digital currencies is a little more detailed. As to Bitcoin adheres to the narrative of “digital gold”, precisely highlighting that it is a scarce asset whose value tends to grow as there is greater demand, which has been greatly favored by the process of digitalization of the economy itself.

The curious thing is in the comparison that ICBC about Ethereum. The bank calls the cryptocurrency as “digital oil” and clarifies that this is because of the power it has had within the ecosystem of digital currencies, promoting the creation of a large number of applications and programs Web3 throughout the market.

Going deeper into Ethereum, The bank highlights that the currency has benefits similar to those of Bitcoin, although its strength is in the constant updating of its technology in various areas. The security, scalability and sustainability of the network stand out as strong points, in addition to the great exposure and adoption seen in recent years.

Chinese banks and interest in cryptocurrencies

Disclosures made by the bank ICBC of China highlight the interest in said cryptocurrencies among the country’s financial entities, this despite the Chinese government’s refusal to enable commercial, mining and other types of operations with said assets throughout the national territory.

On the one hand there is the fact that China maintains a very restrictive stance against cryptocurrencies. In the middle of last month, local law enforcement shut down a banking operation that took advantage USDT for foreign currency exchanges, and months earlier redoubled efforts against cryptocurrency mining as part of a renewed energy conservation implementation plan.

However, given the demand that these assets are having in different latitudes and markets, analysts consider that the Chinese government would be considering making the restrictive regulations they manage somewhat more flexible. An example of this could be the openness that Hong Kong has had towards the commercialization of cryptocurrencies at the local level, to the point that they already have a few ETFs operating. Bitcoin and Ethereum for international traders, although they have not enjoyed the same trading volume as their US counterparts.

The interest on the part of the Chinese market may also be taking as a reference the US openness towards these assets. Since the Securities and Exchange Commission (SEC) approved at the beginning of the year exchange-traded funds based on Bitcoin, These products have registered exponential growth, especially scoring the product managed by BlackRock as one of the most important in the sector of ETFs in general.

Currently the SEC The US must define the date for the arrival of ETFs Ethereum in the local market, something that could happen before the presidential elections that the country will hold at the end of this year.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.