The Deputy Governor of the Central Bank of China approves Bitcoin
China’s stance on cryptocurrencies over the past few years has been largely unfavorable, following a massive crackdown on Bitcoin miners and top fintech firms.
However, the country seems to have turned around with a deputy governor of the People’s Bank of China (PBOC) recognizing the value of cryptocurrencies like Bitcoin in the Boao Forum for Asia.
China changes its stance on Bitcoin
China’s crackdown on Bitcoin miners and their tough stance towards major fintech firms has created a shadow of doubt about its mission to become the world’s top crypto nation. of this country. However, it seems the situation could change as Li Bo, the deputy governor of the People’s Bank of China, has shown support for cryptocurrencies and digital assets.
He asserted that Bitcoin and some stablecoins should be seen as alternative investment options for investors looking to diversify their portfolios. Li Bo also noted that cryptocurrencies should not be demoted because they “play an important role in the future”, signaling great institutional interest from the government.
He went further to differentiate between crypto assets such as Bitcoin and the proposed digital yuan, saying that, as an investment option, crypto assets are “self-propelled. it is not a currency ”.
Li Bo’s remarks 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 tightly integrated with the economy. real and for the real economy ”.
The former governor of the Central Bank of China has gone further by emphasizing the need to differentiate digital assets from digital currencies.
On the Flipside
- Bitcoin’s value has dropped more than 10% and hit a low of around $ 51,000 by the end of the week.
- This drop is related to a power outage in China’s Xinjiang region, home to some of the largest mining pools, causing the hash rate to drop significantly.
- The plunge resulted in a frenetic liquidation of up to $ 10 billion by about 927,000 traders.
Digital – March Steady Towards A CBDC
China is critically important among a number of countries that are frantically trying to develop their central bank digital currencies (CBDCs) as the world moves to digitize with certainty. . China’s proposed digital yuan will be issued and regulated by the PBOC. Recent comments by Li Po and Zhou Xiaochuan show a harmonious relationship between Bitcoin and the digital yuan.
Speaking on whether the digital yuan is intended to threaten the dollar’s position as the world’s reserve currency, Li Bo said during the Boao Forum for Asia that the PBOC was not meant to be. of the digital yuan replaces the US dollar.
He stated that the process of adopting the digital yuan will be a natural process and will be determined entirely by the needs of the market. With a full-scale test of the digital yuan planned for the Winter Olympics in Beijing, it will be interesting to see how things go.
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