Chinese Central Bank was seen making a U-turn over its stance relating to private cryptocurrencies. After initiating crackdown operations in the country for more than 4 years, Chinese Authorities are returning back to the crypto basics. Central Bank of China says that Bitcoin, as well as altcoins, are commendable alternatives for the purposes of investments. Is China making any positive progress towards the crypto industry, particularly, Bitcoin?
Li Bo, who is the Dy. The Governor of the People’s Bank of China has recently addressed Bitcoin in a positive way during Boao Forum for Asia penal. The panel was hosted by one of the leading news outlets of the world, CNBC, wherein Li Bo too was invited.
During his address, Li Bo accepted that for investment purposes both, Bitcoin as well as altcoins, are better alternatives. This is the first time after 4 years when someone from the Chinese authorities has made such a statement against privately issued digital assets/altcoins. But he also clarified few things regarding his opinion on cryptocurrencies. Li Bo suggested that:
China and the Chinese population have utmost respect and fondness towards the leading digital coin, Bitcoin. Chinese people are also very much involved in altcoins trading as well but they both cannot be regarded as currencies by any means. So the only use of digital assets (i.e. cryptocurrencies and altcoins) is that they should be used as an alternate source of investments.
Examining the statement of the Dy. Governor, People’s Bank of China, people are arguing that China is trying to return to crypto basics. Many experts were also seen suggested that the statement shows a “progressive” attitude. While there were also few experts that the statement is intentional because China would not want to jeopardize the adoption of its digital Yuan.
Li Bo continued to explain China’s take on cryptocurrencies, especially Bitcoin. He stated that China too is looking at the available options through which it can regulate the digital asset industry. He advocated that the regulation should not be excessive but minimal which can ensure the growth of the digital industry. At the end of his address, he again clarified that the crypto policies of the Chinese Central Bank will not be changed in any manner.
In any case, the statement of Li Bo was a shocker for the entire crypto space globally. It may be because Li Bo has recently taken over the charge as the bank’s newly appointed Dy. Governor.
As regards the Chinese digital Yuan, Li Bo clarified that the bank’s policy is not to replace global fiat currency i.e. US Dollar. Instead, the ambition of China is to promote bilateral trade at the international level. For the purposes of ensuring mass adoption of e-Yuan, Li Bo suggested that the bank has plans. He revealed that as a first step China will have to develop an efficient and effective ecosystem.