China places more challenges to Bitcoin and Internet shopping in its latest announcement from the People’s Bank of China. The PBOC stated that it would have a temporary ban of quick code response, QR, scans for payment on mobile devices, reports CoinDesk today.
This announcement comes as Alibaba, the leading e-commerce company in China with 300 million users and $660 billion a year in payments and the social media Internet site, Tencent, recently announced that they would seek to launch cards that utilize QR codes, as an alternative to traditional credit cards.
Is this a cause for concern? Eric Gu, co-founder of Bitangels, has expressed it as such: ‘As a hardcore bitcoiner I am deeply troubled by the news, I think it is back paddling from the Internet financial innovations in recent years, and the probability is much higher for the central bank to release tougher regulations against bitcoin.’
Bobby Lee, CEO of BTC China, is not concerned because bitcoin payments are not accepted in China at this point and the industry that he terms the ‘ecosystem’ is underdeveloped.
The PBOC announced today that it may restrict offline transactions of Internet financial services. Also, a consideration of a per-transaction limit of the equivalent of $163 per transaction and an annual limit equivalent of $1630 is in discussion. This translates to new challenges for Alipay and Tenpay who are rivaling China UnionPay.
China’s UnionPay is the world’s largest credit card issuer. This new announcement today is slowing down its competition from Bitcoin. How PBOC continues to view the payment arrangement will set the pace for alternative e-commerce and crypto-currency in China. TechinAsia, an online digital magazine, sees this temporary QR scan ban a big impact for e-commerce in China.
The Bitcoin exchanges will require strategy and planning on how to offer Bitcoin exchange services with very knowledgeable business procedures in security and legal due diligence process, since there are many challenges in the Chinese 'financial alternate currency ecosystem.'
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Twitter: Victoria Wagner@victoriaross888