A major Chinese bank is supposedly investing money in bitcoin wallet Bitpie. It's not known how much the China Merchant Bank (CMB) would be investing in Bitpie. However, what is known is that both organizations already have a partnership with blockchain protocol system Nervos Network. This could be the bonding forces between the bank and the crypto wallet.
CMB and some other partners invested 28 million dollars in Nervos Network back in 2018. Now the two parties are working together on the development of decentralized financial services. It's very likely that Bitpie comes into the picture here. Nervos already has a partnership with the popular wallet to provide security among other things.
The Nervos Network allows any crypto-asset to be stored with the security of Bitcoin. In addition the network enables smart contracts and layer 2 scaling. As a result Bitpie is using Nervos for securing its multi-chain wallets, while CMB is exploring blockchain technology to power future decentralized finance applications.
In the light of recent developments it's wouldn't be too surprising to see the Chinese bank adding cryptocurrency portfolio's or a bitcoin wallet to its offering. Chinese cryptocurrency investor Dovey Wan already warns on Twitter that China Merchant Bank and Bitpie are working together on a non-custodial wallet. This means that consumer won't have access to their own private keys, something that defies the purpose of cryptocurrencies.
China very bullish on blockchain
On Thursday last week the Chinese president urged companies and government institutions to start using blockchain technology. President Xi Jinping sees blockchain technology as a core for innovation. According to him the implementation and adoption of blockchain technology is key in the transformation of industries and innovation of technology. He pointed to use-cases in financial business, mass transit and combating poverty.
One day later China approved a new law aimed at cryptography. Commercial endeavors in the field of blockchain and cryptography will need to follow guidelines and regulations imposed by the state. The new law needs to encourage research and development on commercial cryptography technologies in China. They believe that with this in mind a standardized regulatory system will help the blockchain market to grow.
After that the market saw a gigantic increase in value. Chinese crypto investors pumped millions into bitcoin, but especially Chinese projects like Tron, NEO, Bytom and VeChain.
Posted from my blog: https://www.nederob.nl/2019/10/28/chinese-bank-invests-in-bitcoin-wallet/