Cryptocurrency has been seen way more acceptance in terms of being used as a medium of exchange and this has shown when many prominent firms begin to accept the use of bitcoin and other cryptos for the payment of goods and services. Despite all these developments, there is still some backlash against the use of crypto for payments because many feel that it has no true value and others feel that it could be used for illegal activities. Even as cryptocurrency is becoming more dominant on the world stage, not every commercial entity is supportive of its use on the platforms.
It seems Alibaba is one of these as it was announced on October 10, 2019 by Alipay, the payments arm of the company, stated that Alibaba has banned transactions that involve bitcoin and other cryptocurrencies.
This stance was made clear in a Twitter threat in which the official Alibaba account stated that the company monitors all over-the-counter transactions and is working closely to make sure that all transactions and use of their platforms are compliant with all regulations.
“If any transactions are identified as being related to bitcoin or other virtual currencies, @Alipay immediately stops the relevant payment services,” they stated.
This announcement was perhaps sparked by rumors that Alibaba is using being used for bitcoin transactions by people. Binance also recently confirmed that they will be acceptingI fiat currencies through WePay and Alipay. This was during the peer-to-peer launch of Binance’s options for bitcoin, ether and so on to the Chinese yuan and while it has been confirmed that Binance is not working directly with WePay or Alipay, customers often make use of these two options for their transactions.
One of the possible theories as to why Alibaba is so strong against cryptocurrencies is because its native country of China is supposedly developing their own national digital currency that is to be launched next year and is believed to be a response to the Libra token. Clearly China would rather their citizens make use of a home-developed cryptocurrency than go to any of the popular ones including bitcoin and ether and Alibaba is maybe simply following in this ideology.