Li Bao, Deputy Governor of the People’s Bank of China Acknowledges the Future Role of Encrypted Assets

China has expressed interest in crypto assets as both tools and as an alternative investment. In the past, the country's authorities have made several attempts to ban cryptocurrencies; it seems that China is changing its stance with an increased interest in adopting crypto and blockchain technology.

By
Ifeanyi Egede
on
April 21, 2021
Category:
Blockchain News


Bo and Xiachuan at the Boao Forum

During the Boao Forum for Asia held on April 14th,  Li Bo, the current central bank deputy governor, and Zhou Xiaochuan, the immediate past governor of China's central bank, respectively expressed their stance about the digital currency space. Li Bo suggested the use of these virtual currencies to be used as an investment tool. Bo further said that the central bank does not doubt that cryptocurrencies have a very vital role to play in future investments. He also remarked that they won’t replace fiat currencies but would serve as optional investment tools. He specifically stated that:

 "We are convinced that cryptocurrencies are encrypted assets...they are not currencies themselves but they can be substitutes for investments. Hence, we are sure that crypto-assets have a role in future investment opportunities either as alternative investments or as a tool of investment." 

Source

Bo also remarked that China is working in tandem with other countries' central banks to develop a regulatory framework for these cryptocurrencies. This will help investors avoid losing their hard-earned cash. Despite Bo's conviction, Xiaochuan had a different opinion on the possibility that Bitcoin or cryptocurrencies would soon be a world investment tool.

He believes that these digital assets have no real value without being incorporated into a real economy. He opined,

 "cryptocurrencies need close monitoring and proper integration into a real economy to serve a useful purpose... I still have lots of doubts, so I urge everyone to be cautious in making their investment decisions around Bitcoin and other cryptocurrencies."


Bitcoin and Investors

Most investors are exercising caution about investing in these virtual currencies, especially as BTC is well-known for its highly volatile price movements. For instance, there was a massive price correction of almost all digital currencies over the weekend. Analysts estimated that over $11 billion worth of liquidations happened across the entire crypto industry during this massive price crash. 

It is important to understand both perspectives of both Bo and Xiachuan. When looking closely there a lot of failures and inefficiencies in crypto which seems to be what Xiachuan is alluding to. When looking through a different lens of 5-10 years in the future a lot of these nuances can be glazed over, which is where Bo’s pro-blockchain adoption comes into play. Overall, the forum displayed the continued interest and research that China and other countries around the world have garnered.

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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile crypto writer and researcher on fintech, the blockchain and emerging technologies. He has several published works online and in the print media. He loves reading, research, traveling, meeting people and football. When he is not writing, he spends time with his lovely wife and kids