At the Boao Forum on Sunday, People’s Bank of China (PBoC) deputy governor Li Bo spoke about the benefits that cryptocurrency as an investment tool can bring, as well as the vagueness surrounding the country’s regulations on digital assets.
According to journalist Colin Wu, Li stated that the regulatory risks for the central bank are still around, referencing its past ban on initial coin offerings and cryptocurrency exchanges.
Li reportedly added that the central bank will keep on maintaining the current measures and practices as it keeps a lookout for potential change in regulation, but appears to notice that cryptocurrencies make good investments.
The deputy governor remarked that Bitcoin and stablecoins are encrypted assets, adding that encrypted assets are not currency itself but an investment option. He believes that crypto assets should be a significant part of the future, whether as a tool for investment or as an alternative investment.
“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,” said Li.
He said that stablecoins issued by private companies may need stronger regulations than Bitcoin.
Li has also discussed about the expansion of digital yuan experimentation at the same forum.
