The interest of the world’s largest corporations in cryptocurrencies has persisted despite government bans. Even in the face of China’s strict stance on crypto, the largest bank in the world has made bold statements in support of Bitcoin and Ethereum, drawing comparisons that have been likened to a “love letter” by popular ETF issuer VanEck.
The Industrial and Commercial Bank of China (ICBC), with unparalleled total assets and market value, was established on January 1, 1984, in Beijing and boasts a workforce of over 405,000 employees. Despite the Chinese government’s crackdown on Bitcoin mining, there has been a surprising embrace of cryptocurrencies in the autonomous region of Hong Kong. Chinese banks have also dabbled in bond issuance on the Ethereum network, showcasing that China may not be entirely out of the crypto landscape as it seems.
In their recent report, ICBC highlighted the scarcity that Bitcoin creates, comparing it to Gold. They noted that the challenges of transporting physical Gold are overcome by Bitcoin, positioning it as a digital gold and a reliable store of value.
The journey to the world’s largest bank embracing Bitcoin did not happen overnight. Events like the struggles of companies like BlackRock and Fidelity for a BTC ETF paved the way for this moment. ICBC’s focus on the rapid growth of a digital economy has led them to compare Bitcoin to gold, and Ethereum to oil. Ethereum serves as the fuel for the Web3 world, providing blockchain-based infrastructure that hosts popular protocols and is sought out by rival networks aiming to be EVM compatible. Many of these competitors are essentially layer2 solutions linked to their primary network.
Matthew Sigel, the head of digital asset research at VanEck, described the world’s largest bank’s statements as a love letter to BTC and ETH, expressing admiration for these major crypto players. Investors should be cautious as cryptocurrencies are highly volatile and carry risks, conducting thorough research before making investment decisions.
