Li Bo, a deputy governor of People’s Bank of China (PBoC), the country’s central bank, said over the weekend that Bitcoin and stablecoins are ‘alternative investments’ in the eyes of the law.Breaking: Li Bo, deputy governor of the Central Bank of China, said that crypto assets such as Bitcoin should be used as investment tools or alternative investments. This is the first time that the Chinese government has recognized the asset value of cryptocurrencies. pic.twitter.com/bgDIVA1eMJ — Wu Blockchain (@WuBlockchain) April 18, 2021 Bitcoin, stablecoins are all ‘alternative’
“We regard bitcoin and stablecoins as crypto assets. Crypto assets, as Agustin just discussed, are investment alternatives, they are not a currency per se. The main goal we see for crypto assets, going forward, they are mainly investment alternatives,” said Bo during the Bo’Ao Asia Forum.
Stablecoins are cryptocurrencies pegged to a fiat currency, such as the US dollar or the British pound, on a 1:1 basis that are redeemable for each other and match a supply equal to the underlying assets.
They are a big market as well. Stablecoins like Tether and USDC represent over $48 billion and $12.5 billion worth of US dollars effectively but remain in a regulatory gray area in most countries. However, authorities are starting to take notice and make create relevant policies for their smooth functioning in the broader ecosystem.Tether has just surpassed $45B market cap! 🎉 And it was only in January when Tether tokens ($USDt) stood at US$25 billion. Another milestone has been reached! 👩🏽🚀🚀 Stay up to date on our official Telegram channel ⬇️https://t.co/137b5oOauU pic.twitter.com/oNv7APaz9g — Tether (@Tether_to) April 13, 2021
And as per Bo, if stablecoins are to gain widespread popularity in China, their issuers would be legally regulated as traditional banks, “For stablecoins, they are crypto assets, and if they want to be accepted widely as a payment solution, ...