China’s stance on cryptocurrency in the last few years has been largely unfavorable, following the massive crackdown on Bitcoin miners and top fintech companies.
However, the country seems to have taken a U-turn with a deputy governor of the People’s Bank of China (PBOC) recognizing the value of cryptocurrencies like Bitcoin during the Boao Forum for Asia.
China Changes Its Stance On Bitcoin?
China’s crackdown on Bitcoin miners and its hard stance on major fintech firms cast a shadow of doubt over the country’s quest to become the world’s leading cryptocurrency nation. However, it seems the tide could be turning as Li Bo, a deputy governor of the People’s Bank of China, has shown support for cryptocurrency and digital assets.
He asserted that Bitcoin and some stablecoins should be considered as alternative investment options for investors looking to diversify their portfolios. Li Bo also noted that cryptocurrencies should not be relegated to the background as they “play a major role in the future,” signaling a massive institutional interest from the government.
He went further to make a distinction between crypto-assets like Bitcoin and the proposed digital yuan, saying that, as an investment option, a crypto-asset “is not a currency in itself.”
The comments by Li Bo were reiterated by Zhou Xiaochuan, a former governor of the Central Bank of China, who noted that both digital assets and digital currencies should “be closely integrated with the real economy and serve the real economy.”
The former governor of the Central Bank of China went further to underscore the need for distinguishing digital assets and digital currencies.
