China proposes treating Bitcoin as an investment instrument

Cryptocurrencies, such as Bitcoin, should be viewed as alternative investments. This was stated by Li Bo, deputy governor of the People’s Bank of China (PBoC), during the Boao Forum for Asia, according to journalist Colin Wu.

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 was the first time the Chinese authorities had acknowledged value in cryptocurrencies.

In his remarks, Li Bo highlighted the advantages of digital assets as an investment instrument. However, he stressed the regulatory uncertainty surrounding them.

The PBoC representative also added that regulation alongside banks will be required for stablecoins if they aim to become widely used payment tools in the future.

According to the official, “current practices,” such as banning Bitcoin exchanges and conducting ICOs, will remain in place until new regulations are completed.

“Bitcoin and stablecoins — encrypted assets. They are an investment asset, alternative investments, not currency. They should play an important role in the future,” Li Bo explained.

The deputy governor of the PBoC also touched on the digital yuan (DCEP), according to Bloomberg. He said that the regulator’s immediate interest is domestic use of the CBDC. In Li Bo’s words, international interoperability is a complex issue that does not require haste.

“We have repeatedly said that our goal is not to replace the US dollar or other international currencies. We want the market to decide what it finds convenient to use in international trade and investment,” he clarified.

Earlier, US intelligence called the digital yuan a threat to the dollar. Prior to that, the agency stirred concerns about China’s dominance in the field of cryptocurrencies.

How China managed to become a leader in monetary innovation thanks to the digital yuan (DCEP)

In April 2021, the PBoC acknowledged that interest in the DCEP was partly based on the rise in the price of Bitcoin.

Recall that in December 2020, Chinese media described the “hype” around Bitcoin’s new records, but later noted a deterioration in gold’s prospects in this context.

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