A deputy governor of the People’s Bank of China has said the country regards bitcoin and stalecoins as crypto assets – not as currencies – and hence they are investment alternatives.
April 19, 2021 | AtoZ Markets – Cryptocurrencies like Bitcoin need to be considered as alternative investments. This was stated by Deputy Governor of the People’s Bank of China (PBoC) Li Bo during the Boao Forum for Asia, journalist Colin Wu said.
Breaking: Li Bo, deputy governor of the Central Bank of China, said that crypto assets such as Bitcoin should be used as investment tools or alternative investments. This is the first time that the Chinese government has recognized the asset value of cryptocurrencies. pic.twitter.com/bgDIVA1eMJ— Wu Blockchain (@WuBlockchain) April 18, 2021
Wu noted that this is the first time that the Chinese authorities have recognized the value of cryptocurrencies.
During his speech, Li Bo highlighted the benefits of digital assets as an investment vehicle. However, he highlighted the associated regulatory uncertainties.
The NBK spokesman also added that regulation on an equal basis with banks will need stablecoins if they plan to become widely used payment instruments in the future.
According to the official, “current practices” in the form of banning the operation of Bitcoin exchanges and holding ICOs will remain in force until the completion of the development of new regulation.
“Bitcoin and stablecoins are encrypted assets. It is an investment asset, an alternative investment, not a currency. They should play an important role in the future, ”explained Li Bo.
The deputy head of the NBK also touched on the digital yuan (DCEP), Bloomberg reported. According to him, the primary interest for the regulator is the internal use of CBDC. According to Li Bo, international interoperability is a complex issue that does not require haste.
“We have said repeatedly that our goal is not to replace the US dollar or other international currencies. We want the market to choose what is convenient for it to use in international trade and investment,” he said.
Earlier, the US national intelligence called the digital yuan a threat to the dollar. Prior to that, the department worried about the dominance of China in the field of cryptocurrencies.
In April 2021, the NBK acknowledged that interest in DCEP is based in part on the rise in the price of the first cryptocurrency.
Recall that in December 2020, the Chinese media called the new records of bitcoin “hype” , but later noted the deterioration of the prospects for gold against this background.
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