Recently, there have been reports indicating that Bitcoin is expected to win big in China after senior government officials recognized that crypto is as one of the investment alternatives. This serves as a benchmark reminiscent of efforts made by the Chinese government to anticipate crypto in the past.
In 2017, the Chinese government banned ICOs, a cryptocurrency exchange, expelling Binance companies from operating in China. However, the comments of the deputy head of the People’s Bank of China carry indications that the Chinese government is starting to be soft on the crypto industry and Bitcoin investments.
In an interview on CNBC, Li Bo said that although Bitcoin and stablecoin are not considered real currencies yet they can be considered as crypto assets and investment alternatives.
At the same time, further Li Bo noted that many countries, including China, are looking for options on how to deal with the emerging crypto market. Li agreed that an appropriate regulatory framework is needed to prevent financial risks that may arise.
Analysts argue that China is easing strict restrictions on Bitcoin to gain support for the CBDC. On that basis, LI Bo puts Bitcoin and Stablecoins as investment alternatives.
China has the largest population in the world, and as a giant economy. If Bitcoin restrictions are lifted, the crypto market could see huge inflows from Chinese investors and eventually increase the demand and value of BTC. As a market leader, China’s actions could push more administrations skeptical of crypto to accept it as well.
