The Central Bank of China, BOAO, is now addressing Bitcoin as an investment alternative along with marking a notable shift in the tone of Beijing’s tone. It came after a crackdown on the issuance of cryptocurrency and trading around four years ago.
BOAO, China Calls Bitcoin an Investment Alternative After Crackdown
The insiders of the crypto industry called the comments of the bank progressive and are observing closely for any regulatory alterations made by the PBOC, the People’s Bank of China.
The deputy governor of the PBOC, Li Bo, revealed on Sunday during a panel that was hosted by CNBC at the BOAO Forum for Asia said:
“We regard Bitcoin and stable coin as crypto-assets … These are investment alternatives.”
In addition to this, it was revealed:
“They are not a currency per se. And so the main role we see for crypto assets going forward, the main role is investment alternative.”
In accordance with the data revealed by the leading analyst price of BTC was up around 2% at 12:25 PM Beijing time at over $57,134.04.
Once, the country was one of the largest purchasers of BTC in the world.
However, in the year 2017, China prohibited so-called ICOs, the initial coin offerings, a method to raise money for crypto firms by supplying digital tokens.
The officials shut down the local crypto exchanges that same year and were prompted by worries about financial steadiness.
“As investment alternatives, many countries, including China, are still looking into it and thinking about what kind of regulatory requirements. Maybe minimal, but we need to have some kind of regulatory requirement to prevent … the speculation of such assets to create any serious financial stability risks.”
Regulations on The Cryptocurrencies by The Central Bank
Vijay Ayyar, the Head of Business Development at Luno, a cryptocurrency exchange, sent an email to CNBC, that read:
“I think it is quite significant and is definitely different to their previous statements or positions on public cryptocurrencies.”
In addition to this, Vijay discussed the motivation behind the shift in the tone of PBOC and said:
“Governments are realizing that it is a viable and established, yet growing, asset class and need to regulate it. China regulating crypto would be another massive boost to the industry in China and globally.”
Moreover, China is working on the digital Yuan, its own digital currency which is different from BTC as it is not a cryptocurrency.