Official Retailer of Chinese Tech Company Enables Crypto Payments
Leading Chinese technological company, Xiaomi has enabled the acceptance of cryptocurrency payments for purchases in one of its official retail outfits. This is in line with the company’s goal of maintaining its status as a technological, innovative, and disruptive brand.
Xiaomi customers who patronize Mi Store Portugal can now purchase smartphones, smartwatches, and various other types of technological devices with Bitcoin, Ethereum, Tether, and Dash.
The company’s implementation of cryptocurrency payments was facilitated through a partnership with the Swiss cryptocurrency payment service provider, Utrust. Hence, in addition to the above-listed cryptocurrencies, the Utrust native token, UTK is also accepted by Mi Portugal as an instrument of payment.
Utrust is a cryptocurrency payments solution that enables instant transactions across payment platforms. The platform also allows for crypto-to-cash payment settlements in a secure environment. One of the claims of the payment solution is protection against the market volatility that is characteristic of cryptocurrencies. Utrust serves as a mediator to ensure the delivery of product or service before settlement is completed, otherwise, a refund is initiated.
A crypto-friendly environment
The timing of this development comes across as an interesting development to participants in the cryptocurrency industry. A Chinese company going all out in support of cryptocurrencies at a time when the country’s ban on the technology is at its highest tempo is bound to attract some attention.
In China, cryptocurrency activities have been highly discouraged. State instituted bans and enforcement are at the forefront, leading to an exodus of several top practitioners and stakeholders from the country, including native startups. This could explain why the adoption in question is not carried out on Chinese soil by Xiaomi’s headquarters. Instead, it is a campaign that is championed by an official retail outlet in far away Portugal.
Portugal is described as one of the most cryptocurrency-friendly countries in Europe. The crypto tax policy in Portugal is not as strict as we see in several other nations, making it an attractive destination for many crypto users and other practitioners in the industry.
In Portugal, earnings in cryptocurrency are tax-free, and the regulatory burdens on cryptocurrency businesses are not as complicated as in many parts of the world. Hence the attraction of many independent practitioners and other established retailers like Xiaomi who are beginning to implement the innovative payment technology.
Regulation is a matter of jurisdiction
The recent implementation by the Xiaomi representative further emphasizes the jurisdictional distinction in terms of cryptocurrency regulations. Despite being a Chinese franchise, Mi Portugal has gone ahead with the process without recourse to any sanction on the original company.
Since this development, the Xiaomi headquarters has come out to deny any involvement with the retailer’s cryptocurrency adoption exercise. According to a spokesperson from the company, Mi Store Portugal is not directly related to Xiaomi’s operations. It is a “third-party authorized partner”, and operates independently in Portugal. This development may have prompted Mi Store Portugal to remove the announcement from it website, perhaps fearing repercussions that their action could on Xiaomi as a company.
China’s clampdown on cryptocurrency continues as the country’s central bank insists on maintaining the regulatory pressure on the crypto market. This was contained in a statement after a recent meeting where the regulators discussed work priorities for the second half of the year 2021.