A newly opened hotel in China announced it now accepts cryptocurrency, Ether (ETH) as payment for services rendered. The development contrasts the decision of the Chinese financial regulators on cryptocurrency in the country.
Newly Opened ‘Ethereum Hotel’
A newly opened hotel, known as Ethereum hotel situated in China’s Sichuan province becomes the first hotel in China to notify the public of its intention to accept payment in cryptocurrency.
The choice of the hotel to accept cryptocurrency as a form of payment is noted to support the hinterland of West China that has a rich and traditional hotel industry. Also, cryptocurrency is accepted as a means to participate in the trend of the blockchain industry.
Further, as reported the interior of the Ethereum hotel showcases a Bitcoin wall art at the reception lobby. This has been said to mean the hotel’s intention to accept payments in Ethereum, and Bitcoin cryptocurrencies.
This step is a significant boost for the status of cryptocurrency as a currency. However it seems, it is an explicit action against the will of the Chinese government at present. A step that could lead to sanctioning from the government.
Chinese Government Ban On Cryptocurrency
Though the new development of the Ethereum Chinese hotel is against the outlook of the Chinese government on cryptocurrency, there have been no steps taken to put a close to the activities of the hotel until now.
The negative action will be in furtherance of its purview on cryptocurrency as the People’s Bank of China has been making every possible effort to clamp down on the use and trade of cryptocurrency in the country.
Recently, event centres and hotels were banned from holding any event related to cryptocurrency in the country. Also, payment services were prohibited from associating with cryptocurrency. This has seen the WeChat and Alibaba cryptocurrency payment platforms put a hold on cryptocurrency payments on their platforms.
Further, in the recent past, measures have been taken to combat onshore cryptocurrency transactions as well as the freezing of bank accounts associated with cryptocurrency. This indicates the tendency of wrath the Ethereum Hotel is inviting from the government.
However, Chinese investors are still involved in buying ICO tokens and converting their RMB holdings to USDT or Bitcoin through OTC exchanges.
Also, amid the ban on cryptocurrencies, the country has seen a wide acceptance and utilization of blockchain technology for its development.