While highlighting on the regulatory uncertainty surrounding digital assets, Li Bo, the newly appointed deputy governor of the Peoples Bank of China stated that the Peoples Bank of China are investigating the benefits of Crypto as an investment tool.
Citing its previous ban on initial coin offerings and cryptocurrency exchanges, Li Bo said that there is still regulatory risk for the central bank. Also the current measures and practices will be maintained by Peoples Bank of China and that though the investment potential of crypto have been recognized, but the Peoples Bank of China will still explore potential changes in regulation. Colin Wu a journalist opined that Li Bo made the aforementioned statement at the Boao forum in Southern China on Sunday.
“We believe that Bitcoin and stablecoins are encrypted assets,” said Li. “Encrypted assets 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.”
The PBoC deputy governor added that stablecoins issued by private companies may require “stronger regulatory rules” than Bitcoin (BTC), saying:
“In the future, if any stablecoin hopes to become a widely used payment tool, it must be subject to strict supervision, just like banks or quasi-bank financial institutions are subject to strict supervision.”