The People’s Bank of China (PBoC) has seemingly reevaluated its stance regarding cryptocurrencies after Li Bo, the bank’s current deputy governor, went out to say that digital assets such as Bitcoin (BTC) and stablecoins are viable alternative investments. He adds that the PBoC has faith that such assets would more than likely play a significant role in the future as feasible and effective investment means. Li Bo gave out these astounding remarks on last Sunday’s Boao Forum for Asia.
That may be, the bank’s deputy governor still believes that a strong regulatory structure must be put in place to ensure these – in his own words – speculative assets do not incur major financial risks. As per Li Bo, if the world wants stablecoins to be more predominantly used as a viable payment option, a stronger regulatory framework must be implemented, perhaps even stricter than the current regulations for BTCs.
As surprising as to hear the PBoC provide some good words for cryptos, this development seemingly caught everyone off guard, seeing as the BTC dropped hard following its $60K+ per token valuation just last week – now ‘only’ about $55K.
In addition to hinting at PBoC’s much-softened tone toward cryptos, Li Bo also stated on the same event that China’s Digital Yuan has no intention to replace the US dollar and that its internationalization ultimately depends on the market demand.