Will China consider lighter Cryptocurrency regulations?
At the recently conducted nonprofit meeting called the Boao forum where top officials and intellectuals alike from 25 Asian countries meet to hold conversations about a variety of topic geared towards improvement, cryptocurrencies got a mention.
In what was a rather remarkable feat, one of the deputy governors of the People's Bank of China allude to the potential of looser restrictions placed on cryptocurrencies.
According to Li Bo speaking at the forum held in Southern China, cryptocurrencies should be considered as viable investment options and there should be even more inquest into how to leverage its potential. Li added that;
“Encrypted assets(cryptocurrencies) are an investment option, not currency itself. It is an alternative investment, not currency itself. Therefore, we believe that crypto assets should play a major role in the future, either as an investment tool or as an alternative investment.”
Despite being in advanced stage of blockchain use and even launching a CBDC, China has expressed a high level of apathy towards Exchanges, ICO and invariably the trade of cryptocurrencies in the country.
So that explains why despite the subtle bullishness of Li Bo's statement, he further clarified that the PBOC will;
“continue to maintain the current measures and practices”
However, he continued that this is only a precautionary step to take as China explores potential changes in crypto regulations.
This interesting move is coming fresh off the back of concerted moves to get digital Yuan more mainstream use within the country at least.
Could this be the spark that ignites the inevitable crypto flame in China? I mean let's face it, we know how much the people love the tech.
We already know that people in China, despite the numerous restrictions, hold a sizable amount of Bitcoin and numerous altcoins. It's virtually impossible to talk about the crypto industry without mentioning them.
When restrictions in China are loosened up and the country grants its tech-savvy population free access to trade and spend cryptocurrency within the country, guess where all the digital CBDC trackers will be headed to.
The previous President of the PBOC, Zhou Xiaochua, believes that the only way for cryptocurrencies to exists is if they somehow become absorbed into the real economy. According to him ;
“Finance is to serve the real economy. Whether it is digital currency or digital assets, it should be closely integrated with the real economy and serve the real economy.”
Well, maybe it would be integrated with the real economy if you just let it be and didn't put all those restrictions you know? Or maybe, and this is just a wild guess, it is because you know you can't manipulate it with political will.
Posted Using LeoFinance Beta