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China Recognizes Asset Value of Cryptocurrency

  • Deputy governor Li Bo expressed opinions for cryptocurrencies.
  • He believes that crypto should play a major role in the future.
  • The bank’s former governor noted that digital assets must follow the real economy.

At the Boao Forum for Asia on April 18, China’s former central bank governor Zhou Xiaochuan and current central bank deputy governor Li Bo shared their views of cryptocurrencies.

Deputy Governor Li Bo said:

We believe crypto-assets should play a major role in the future, as an investment tool or as an alternative investment. Many countries, including China, are also analyzing it as an investment tool.

In addition, Li Bo said that he believes that Bitcoin and stablecoins are encrypted assets, not a currency itself. To use them as an investment tool, China needs to be careful. They need to think about what kind of regulatory policies should be in place for this investment method.

He added that although the regulatory rule is minimum, they still need to be applied. It will make sure that trading with such assets will not cause severe financial risks. In other words, before the authorities figure out how to regulate crypto, they will continue to maintain the current rules and practices.

Besides this, the former governor, Zhou Xiaochuan, also attending the Boao Forum, said that digital assets must follow the real economy. Noting that finance exists to serve the economy, he indicated that digital currency must also follow suit.

He added that everyone has to make the distinction between digital assets and digital currencies. In considering these issues, China characteristically attaches great importance to the real economy.

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Calev Ford

A Computer Engineering graduate who writes news focuses on cryptocurrency-related and blockchain technology. He is enjoying using his skills to contribute to informing people of the exciting technological advances that happen every day.

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