- China calls cryptos ‘Investment Alternatives’.
- This happens after the launch of the crypto crackdown.
- PBoC also plans to develop Cross-Border solutions With Digital Yuan.
Li Bo, the Vice Governor of the People’s Bank of China (PBoC) has announced that the country regards Bitcoin (BTC) and Stalecoins crypto-assets as investment alternatives. However, this happens for the first time after the launch of the crypto crackdown. Moreover, the crypto crackdown was launched four years ago by the Chinese government.
Li Bo said,
“We regard Bitcoin and stablecoin as crypto-assets. These are investment alternatives. 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.”
Moreover, the statement indicates an unprecedented change in Beijing’s view on digital currencies. More so, Beijing insiders find these comments as “progressive”, as the nation is also providing the way for the upcoming digital yuan.
In addition, Li continues to elaborate on cryptocurrencies as investment alternatives. Added to this, several countries including China, are still looking into it and thinking about the regulatory requirements.
However, the firm needs to have a few kinds of regulatory requirements to prevent it. The speculation of such funds to develop any serious financial stability risks. Even more, he clarified that the PBoC will keep its regulatory framework on cryptos unchanged.
PBoC Plans to Develop Cross-Border Solutions With Digital Yuan
The Central bank’s Deputy Governor explained about the digital yuan. However, he stated that their goal is not to replace the USD or any other international currency. Their aim is to allow the market to select and facilitate international investment and trade.
Furthermore, Li mentioned that PBoC has few plans on developing cross-border solutions with the digital yuan. Even more, their aim is to build a solid domestic e-yuan first. After that develop a healthy ecosystem and also work with their international partners. Hopefully, in the long term, they might have a cross-border solution as well.
Also, China might allow foreign athletes and visitors to utilize its crypto during the Beijing Winter Olympics in 2022.