The People’s Bank of China (PBOC) has shifted its tone on Bitcoin which it now considers an “investment alternative,” according to CNBC.
- PBOC Deputy Governor Li Bo in a panel said the central bank regards Bitcoin and stablecoin as crypto assets and investment alternatives.
- Li said China is looking into crypto assets and thinking about regulatory requirements to prevent speculations to create financial stability risks.
- Li’s comments highlight a potential shift in tone, but he noted that the central bank will keep its regulations on cryptocurrencies unchanged for now.
- China banned initial coin offerings (ICOs) in 2017. It also shut down local cryptocurrency exchanges on financial stability concerns.
- Analysts believe that China regulating crypto would boost global industry, as governments realize that it is a viable and established asset class.
- China is developing its digital yuan in the aim to replace cash and coins. This is targeted to be launched at the 2022 Beijing Winter Olympics.