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The Chinese government, well known for its stance against Bitcoin and cryptocurrencies in general, seems to be shifting ground. The country is considering Bitcoin as an alternative investment for the nation, according to Li Bo, Deputy Governor of The People’s Bank of China.
On a CNBC panel at the Boao Forum for Asia, Li Bo said,
“We regard Bitcoin and stablecoin as crypto assets … These are investment alternatives. They are not currency, per se. And so the main role we see for crypto assets going forward, the main role is investment alternative.”
China has been very critical of cryptocurrencies. Officials allegedly tried to ban Bitcoin, forcing its citizens to resort to peer-to-peer trading. The nation has also been working on its own central bank digital currency (CBDC) and is in late-stage development.
China’s CBDC, which has gone through different levels of testing, is now ready to be tested by foreigners. According to a CNBC report, PBoC is planning to let foreigners at the upcoming Beijing Winter Olympics experiment with the digital currency.
During the CNBC panel, Li Bo added,
“For the upcoming Beijing Winter Olympics, we were trying to make e-CNY available not only to domestic users but also to international athletes and like visitors.”
He added that China is not in competition with any nation and is not trying to replace the US dollar as some people speculate, but wants to build a better financial system and facilitate international trade.
Meanwhile, Silicon Valley legend Peter Thiel has warned that Bitcoin could be China’s secret weapon. Speaking earllier this month during a strategy discussion hosted by the Nixon Foundation, Thiel said the availability of several reserve currencies, such as the Chinese e-yuan and Bitcoin, could be used by China to weaken the US dollar.
Though China is considering Bitcoin as an investment, there are still concerns about the energy costs of mining. CNBC reports that the country’s inner Mongolia region plans to ban new cryptocurrency mining to cut down on energy consumption.
Ponvang Bulus is a cryptocurrency enthusiast. He writes on cryptocurrency and blockchain technology. As a believer in the glorious future of blockchain, he is helping to spread the word and get the message out there for the world to embrace the future now.
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Author: Ponvang Bulus