Central Bank of China May Regulate Bitcoin as “Investment Alternative”

Key Takeaways

  • Li Bo, the deputy governor of the People’s Bank of China (PBOC), said Bitcoin was an “investment alternative.”
  • This is the first time a high-ranking regulator in China has referred to Bitcoin in these terms.
  • Speaking at an economic conference, deputy governor said private stablecoins needed stronger regulation than Bitcoin.

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China’s alpha bank has released a statement calling Bitcoin an “investment alternative.” The comments fly in the face of the country’s years-long opposition to the leading cryptocurrency.

Central Bank Official Hints at Bitcoin Regulation

Li Bo, deputy governor of the People’s Bank of China (PBOC), spoke at Boao Forum for Asia, an economic conference attended by various government leaders, including China’s President Xi.

“We regard bitcoin as crypto assets. Crypto assets are investment alternatives, and they are not a currency per se. The main goal we see for crypto assets is mainly investment alternatives.”

This is the first time a high-rank regulator in China has referred to Bitcoin as an investment, distinguishing it from its currency use.

For years, the People’s Bank of China (PBOC) has opposed using cryptocurrencies in its economy, citing their illicit use like money laundering and tax evasion. Chinese regulators banned initial coin offerings (ICOs) in 2017 and imposed a complete ban on cryptocurrency trading a year later.

According to reports, stablecoins such as Tether (USDT) have been used on a massive scale in China for money laundering and illegal gambling.

In response to the popularity of cryptocurrencies, China also rolled out the digital…

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