Chinese regulator says Bitcoin is an ‘alternative investment’ |
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Chinese regulator says Bitcoin is an ‘alternative investment’ |

Li Bo, vice governor of the People’s Bank of China (PBoC), the country’s central bank, said over the weekend that bitcoin and stable currencies are alternative investments in the eyes of the law.

I tell you: Li Bo, vice governor of China’s central bank, said crypto assets like bitcoin should be used as investment vehicles or alternative investments. This is the first time the Chinese government has recognized the heritage value of cryptocurrencies. pic.twitter.com/bgDIVA1eMJ

– Wu Blockchain (@WuBlockchain) April 18, 2021

Bitcoins, stables – all alternatives

We consider bitcoin and stablecoins to be crypto assets. Crypto assets, as Agustin just said, are alternatives to investment, they are not a currency in themselves. The main target we see for crypto assets in the future are primarily investment alternatives, Bo said at the Bo’Ao Asia Forum.

Containers are cryptocurrencies that are linked one-to-one to a fiat currency such as the US dollar or British pound, are interchangeable, and match a bid to the underlying asset.

It’s also a big market. Cryptocurrencies such as Tether and USDC are valued at over $48 billion and $12.5 billion respectively, but remain in a grey area in terms of regulation in most countries. However, the authorities are beginning to pay attention to it and to develop appropriate guidelines for its proper functioning in the wider ecosystem.

Tether just passed the $45 billion mark in market capitalization!

And in January alone, cable tokens ($USDt) accounted for $25 billion. A new step has been taken!

Stay tuned to our official channel ⬇️https://t.co/137b5oOauU pic.twitter.com/oNv7APaz9g

– Tether (@Tether_to) April 13, 2021

And according to Bo, as stablecoins gain popularity in China, their issuers will be regulated by law like traditional banks: For stables, these are crypto assets, and if they want to be widely accepted as a payment solution, we need stronger rules, stronger than bitcoin, maybe some kind of currency board, he said.

Bo added:

In the future, I think that stalls that have the ambition to become a widely accepted payment solution should be regulated as a bank or quasi-bank.

Digital currency on schedule

Until now, China has fostered a love-hate relationship with cryptocurrencies. The government is very strict on usage and ownership, but the local market remains one of the largest trading areas for cryptocurrencies in the world (in terms of users and interest). It is also where over 80% of the world’s bitcoin miners are located.

Despite this, the country has not banned direct ownership of cryptocurrencies, with some court cases in China even treating the assets as legal property to resolve issues in previous cases.

A court in Hangzhou, China has confirmed the virtual ownership status of #Bitcoin. This decision confirms that the possession of $BTC is legal in China and shows owners that they will be protected by the country’s legal system in case of a dispute.
Credit @DoveyWan.https://t.co/qiE7WoUueI

– (@) 19. July 2019

The legal support continues to this day. In terms of investment alternatives, many countries, including China, are still looking at them and thinking about regulatory requirements – maybe minimal, but we have to have some kind of regulatory requirements – to prevent the speculative nature of these assets from [creating] a serious threat to financial stability, Bo said, adding that the PBoC will maintain its current regulation of the cryptocurrency market until new laws are introduced.

At the same time, the PBoC governor said that China is moving towards a digital yuan. As previously reported, the future state-owned digital currency (indexed to the yuan) is expected to be launched in mid-2022 and has already been extensively tested in the region.

Other governments, on the other hand, have nothing to fear. Our goal is absolutely not to replace the US dollar or any other international currency. Our goal is to empower the market to make decisions, Bo said, commenting on the issues.

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Chinese regulator says Bitcoin is an ‘alternative investment’ |

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