Cryptocurrency value

China Bank Acknowledges The Value of Cryptocurrency, Says It Is An “Investment Alternative”: A Change Of Mind?

(Photo: Dan Kitwood / Getty Images)

China’s central bank appears to have changed its tone this time in favor of bitcoin after viewing it as an “investment alternative.” Additionally, the Chinese government official said crypto assets would likely accelerate after clarifying that it is not a currency per se.

Due to this sudden statement, he was now being watched closely for some changes that might occur. Which prompted the Chinese bank to publish a surprising commentary on bitcoin despite the crypto crackdown that took place in 2017.

PBOC Says Bitcoin Is A Crypto Asset And An Alternative To Investing

China Recognizes Bitcoin's Value And Says It Is An “Investment Alternative”: A Change Of Mind?

(Photo: Dan Kitwood / Getty Images)

The People’s Bank of China (PBOC) now viewed said cryptocurrency as a real asset. PBOC vice-governor Li Bo said these were “investment alternatives” in an interview with a panel with CNBC at the Boa Forum for Asia.

Despite a ban on initial coin offerings (ICOs) in 2017, China has once grown into one of the world’s biggest buyers of bitcoin.

At 12:25 p.m. Beijing time, the value of Bitcoin skyrocketed to around 2%, according to data provided by Corner office.

ICOs were to launch fundraising activities for companies that handle cryptocurrencies. This is done by issuing digital tokens.

However, final instability would likely hit the economy after local cryptocurrency exchanges closed that same year. This has raised many concerns that the crackdown could cause a lot of problems in finance.

Also Read: Tesla CEO Elon Musk Is No Longer Richest Man After Bitcoin Tweet Cost Him $ 15 Billion In Loss

Li’s statement suggests not only how the Chinese bank views bitcoin right now, but also its “change of mind” to shift gears in cryptocurrency ideals.

Additionally, China, along with other countries, is currently exploring regulatory requirements that might apply if we consider bitcoin as an investment alternative.

Babel Finance founder Flex Yang called the comments “progressive,” while Luno business development manager Vijay Ayyar said in an email from CNBC that the PBOC is quite important and now contrasts with it. that they have commented on on cryptocurrencies over the past few years.

China is currently developing its own cryptocurrency

In the United States, huge tech companies like Tesla have already invested in acquiring bitcoin. Across the world, bitcoin appears far from over, as many investors view it for their financial stability despite Ray Dalio’s prediction of a bitcoin ban in the United States.

Bitcoin hit an impressive record over $ 64,000 last week, which is a 95% increase in 2021.

In another statement, Ayyar said what China is doing to its cryptocurrency will lead to an industry boom around the world. It is also in line with the government’s goal of growing by purchasing its assets.

Right now, China appears to be creating digital yuan, its own digital currency. The difference with bitcoin is its goal of not being a cryptocurrency.

The PBOC aims to replace cash and coins currently in economic circulation.

At the 2020 Winter Olympics in Beijing, Li said the digital yuan could undergo significant testing involving foreign investors. Currently, China appears to be focused on conducting a series of digital currency tests in its major cities.

Despite declining earlier this week, bitcoin will still be a hot trend in virtual commerce.

Related article: China Bitcoin Mining Could Reach 296.59 TWh: This Could Affect Its Climate Change Mitigation Programs

This article is the property of Tech Times

Written by Joen Coronel

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