After almost five years of harsh regulations regarding the issuance of cryptocurrencies, it appears that China has shifted the tone on Bitcoin, calling it an “investment alternative”.
China’s former Central Bank governor, Zhou Xiaochuan, and Li Bo, current deputy governor, shared their thoughts about the future role of cryptocurrencies in the financial system.
We regard Bitcoin and stablecoin as crypto assets… These are investment alternatives. […] They are not currency per se. And so the main role we see for crypto assets going forward, the main role is investment alternative.
Li Bo at the Boao Forum for Asia
Crypto Could Play a Major Role in the Future
China has been known for having a harsh stance against crypto assets. In 2017, local authorities closed several crypto exchanges and banned initial coin offerings, causing immediate price drops.
It seems their stance has softened, as the country is currently studying Bitcoin and other assets — while maintaining current regulations.
We believe that crypto assets should play a major role in the future, either as an investment tool or as an alternative investment. Many countries, including China, are also studying it as an investment tool.
Li Bo
China Is Studying a New Regulatory Environment
The two officials said the authorities would maintain the current legislations for crypto assets. Due to the market’s inherent volatility, China is studying what kind of regulatory body there should be to avoid financial risks.
If it is used as an investment tool, many countries, including China, are also studying what kind of regulatory environment should there be for such an investment method. Although this regulatory rule is the minimum regulatory rule, there are still regulatory rules.
Li Bo
On the other hand, Xiaochuan said people don’t need to know the technology behind digital assets or whether they are decentralised because they don’t understand it. He added that whatever the use case for cryptocurrencies, they should not be used for illicit activities such as tax evasion or money laundering.
The Market Slowly Recovers
These comments were well received by the community after the crypto market crashed on the weekend. As reported, Bitcoin and most altcoins suddenly tumbled, wiping $310 billion USD from the market, liquidating over 1,300,000 traders.
The market is currently recovering. Bitcoin managed to stay above $55,000 USD, while other currencies like Binance’s BNB and ETH recovered 20% and 10%, respectively.
Disclaimer:
The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.
Credit: Source link
