China’s Central Bank Looking to Regulate Bitcoin as an Investment Vehicle

High ranking officials of the People’s Bank of China (PBOC) have hinted that the apex bank is looking for ways to regulate bitcoin (BTC) as an investment vehicle, as they have major roles to play in the future, according to a Weixin report on April 18, 2021.

China May Soften Harsh Stance Towards Bitcoin (BTC) 

While China remains the global heavyweight in terms of bitcoin (BTC) mining activities, the country has since outlawed cryptocurrency trading. However, it appears the People’s Bank of China (PBOC) is looking to soft-pedal a bit on its existing draconian crypto regulation.

Per sources close to the matter, Li Bo, the Deputy Governor of the People’s Bank of China (PBoC) and Zhou Xiaochuan, the former governor, who was also present during the Boao Forum for Asia conference on April 18, reiterated that bitcoin (BTC) and other cryptocurrencies have a huge role to play in the Chinese economy as investment vehicles and as such, the PBoC is thinking of how to regulate it as one.

Li Bo said:

“We believe that bitcoin and stablecoins are encrypted assets. An encrypted asset is an investment option, it is not a currency in itself. Therefore we firmly believe that crypto assets should play a key role in the future, either as an investment tool or as an alternative investment. If it is used as an investment tool, many countries including China, are studying what kind of regulatory guidelines to implement for such an investment method.”

PBoC’s Bitcoin Ban Remains

What’s more, the official went ahead to note that while the PBoC is hard at work trying to find out how best to regulate China’s crypto space, the current blanket ban on crypto trading in the state will remain in place, in order to ensure that speculation in bitcoin does not cause serious financial risks to Chinese residents.

Also commenting on the matter, Xiaochuan stated that while digital currencies are good for the real economy, since they facilitate large payments, they must however be handled cautiously and that is exactly what China is trying to do.

In related news, BTCManager informed on April 15, 2021, that Chinese authorities have expanded the scope of the digital yuan trials and the latest exercise will accommodate 500,000 participants across various regions.

At press time, the bitcoin (BTC) price is hovering around $57,023, with a market cap of $1.07 trillion, as seen on CoinMarketCap.

Related posts:

Source: Read Full Article