Why a Chinese Federal Reserve official said Bitcoin will play an important role in the future

For the first time, a Chinese government official acknowledged the value of Bitcoin and other cryptocurrencies. Li Bo described these assets as an important part of the future at the Boao Forum for Asia, according to a report by Colin Wu, Vice President of the People's Bank of China. Bo said that Bitcoin and cryptocurrencies should be seen as alternative investments and revealed that China is working on regulatory policies on these assets. Officially Clarified Cryptocurrencies are not legal proposals and widespread adoption of additional stablecoins will require "stricter scrutiny". Bo said: Although this regulatory rule is the minimum regulatory rule, there are still regulatory rules. And it is imperative to ensure that speculation on such assets does not involve serious financial risks. That is, we will continue to apply current measures and practices before discovering the necessary regulatory rules. He stressed that "finance", cryptocurrencies, and digital assets should serve the "real economy" if former Chinese Central Bank Governor Zhou Xiaochuan joined Bo. Xiaochuan later said he has a "question" as to whether Bitcoin and digital currencies have "benefits" for the real economy. An attack on the Chinese digital yuan, Bitcoin and the dollar? The Bank of China is developing the digital RMB or digital yuan. Currently, the institution is testing and developing its user interface, wallet, and other features of the central bank digital currency (CBDC). The vice president of the People's Bank of China said the government does not want to "change the US dollar" or any other currency. Bo claimed that the CBDC was designed to "facilitate trade and investment" and expected the market to "choose" the best way to do it. As Dovey Wan, co-founder of Primitive Crypto, reports, digital currency and electronic payment (DCEP) are being tested in the state of Shenzhen. Read more

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