GAC NIO apologizes for announcing use of digital currency without regulatory permission

Shanghai (Gasgoo)- GAC NIO said on Dec. 31 via its Weibo account that it becomes the first Chinese automaker that accepts Bitcoin for payment, but later the announcement was amended, whereby “Bitcoin” was changed to “digital currency”. The statement was cancelled then.

Photo credit: GAC NIO

Shortly afterwards, the automaker apologized for announcing the decision without giving adequate consideration and receiving regulatory permission. It said GAC NIO has a continuous focus on the People's Bank of China’s policies on the pilot project of digital currency, and the launch of its digital currency is on the drawing board.

As one of parent companies, NIO said it has never drawn up any scheme for “buying cars with Bitcoin”. Meanwhile, the startup noted GAC NIO is co-invested by GAC and NIO, while independently operates business. Both two parents have not dispatched personnel to the joint venture and not involved in GAC NIO's operation or management businesses. GAC NIO has its own brand dubbed “HYCAN”, and will not produce GAC or NIO-branded vehicles. All in all, NIO is nothing more than an investor.

Founded in April 2018, GAC NIO involves a registered capital of 500 million yuan ($76.47 million), which are together invested by such companies as GAC Group, GAC NE and Shanghai NIO Automobile Co.,Ltd. It is principally engaged in the R&D and sale of all-electric vehicles, and other supporting services like EV charging, the installation and management of charging piles, as well as EV rental service.

GAC Group agreed on December 18 to offer GAC NIO a loan of 15 million yuan ($2.294 million) with an one-year tenure, according to the GAC's announcement.

some officials from Beijing municipal government visited GAC NIO's headquarters in early Dec. to negotiate with Liao Bing, founder of the startup, about an investment plan, according to a local media outlet. If the discussion goes smoothly, GAC NIO's headquarters or new manufacturing base is likely to be moved to Beijing.