The People Bank of China (PBoC) now refers to Bitcoin as an “alternative investment”. Is this a sign that China will be getting lenient on crypto assets and making cryptocurrency prices fly?
In a panel discussion at the Baoa Forum for Asia organized by CNBC International on Sunday (18/4/2021), PBoC Deputy Governor Li Bo said Bitcoin is an investment alternative.
“We consider Bitcoin and stablecoins as crypto assets. These are investment alternatives,” Li Bo said as quoted by CNBC International, Tuesday (20/4/2021). “They are not a currency in itself. So the role that we see for crypto assets in the future, the main role is that of investment alternatives.”
“Many countries, including China, are still watching and thinking about what kind of regulatory requirements. Maybe minimal, but we need to have some kind of regulation to prevent such speculation of assets for and to prevent serious risks to financial stability,” Li Bo said, adding that the central bank. will maintain the current regulations regarding cryptocurrency.
Bitcoin Transactions Ever Booming in China
China was once home to the world’s largest Bitcoin transactions. But in 2017, the Chinese government banned the issuance of new coins (initial coin offerings) and closed local cryptocurrency buying and selling platforms citing financial stability concerns.
Li Bo’s latest statement is seen as a change in China’s stance on crypto assets. Even Flex Yang, CEO and founder of Babel Finance, called the comments “progressive” as “progressive”. Babel Finance is a crypto financial services company.
“I think this is quite significant and clearly different from their previous statement or position on public cryptocurrencies,” said Vijay Ayyar, head of business development at cryptocurrency exchange Luno.
“The government realizes that Bitcoin is a viable and well-established asset class, but it is growing, and needs to regulate it. China that regulates crypto will be another big boost for the industry in China and globally.”
Bitcoin price continues to show an upward trend, hitting USD64,000 per coin last week.
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