In the last few years, China’s stance on cryptocurrency has mainly been unfavorable following the massive crackdown on Bitcoin miners and top fintech companies. This is the first time an official has recognized the value of cryptocurrencies. Li Bo, a deputy governor of the People’s Bank of China, said that cryptocurrencies like Bitcoin should be used as alternative investment options. The crypto industry has gained massive mainstream exposure this year.
Is China changing 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 country is shifting its stance on bitcoin as Li Bo, a deputy governor of the People’s Bank of China, has shown support for cryptocurrency and digital assets. The deputy governor asserted that Bitcoin and some stablecoins should be considered as alternative investment options for investors looking to diversify their portfolios. He 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.
PBoC gets close to launching digital yuan to the general public.
Li Bo went further to make a distinction between cryptocurrencies like Bitcoin and the proposed digital yuan, saying that, as an investment option, a cryptocurrency “is not a currency in itself.” The comments by the deputy governor were reemphasized 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 People’s Bank of China has conducted several successful digital yuan trials across the country and is now very close to issuing it to the general public.