Crypto Assets Will Play a Major Role in the Future – PBC Deputy Governor

The deputy governor of the People’s Bank of China, Li Bo has revealed in the forum held today 18^th April, 2021 for the Asia continent that crypto assets will be of great importance in the nearest future and might be considered as investment options. Present at the event was the former governor of the Chinese central bank, Zhou Xiaochuan and he gave similar views according to media report.

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Crypto to Play a Major Role in the Future

In the forum, the deputy governor stated that China is not left out of the countries making research on crypto assets becoming an investment tool. He was further asked if the central bank would maintain their stringent stance on cryptocurrency transactions like it has done before. 

In his reply he stated that cryptocurrencies are encrypted assets and not currencies and that the bank believes they would play a role in the future. He also stated that a regulatory framework exists for crypto assets and that the country is making necessary research in that regard;

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“We believe that Bitcoin and stablecoins are encrypted assets. Encrypted asset is an investment option, it is not currency itself. It is an alternative investment, not currency itself. Therefore we believe that crypto assets should play a major 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 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…”

He went on to speak on stablecoins were he stated that a stronger regulatory framework will be needed if they are to become legal tender;

“…If we want such encrypted assets to become widely used payment solution, we need a stronger regulatory rule, which is more stringent than Bitcoin’s current regulation…”