China Crypto Roundup (Apr. 19-Apr. 25)：Crypto Assets Recognized as Alternative Investment in China
1. Deputy governor of the People’s Bank of China has given an important signal that cryptocurrencies and other assets should be used as investment tools and alternative investments
Li Bo, the current deputy governor of People’s Bank of China (PBoC), expressed his views on cryptocurrencies at the Boao Forum for Asia on April 18. “We think the main role [where] crypto assets should play in the future is as an investment vehicle or as an alternative investment,” Li said.
“Take it as an investment tool, many countries including China are also studying, that is, for such an investment way should have what kind of regulatory environment. Although this regulation is the minimum regulation, there still need to be regulation. And also to ensure that speculation in these assets does not create serious financial risks. In other words, until we figure out what kind of regulations we need, we will continue to do what we do now.”
“The purpose of finance is to serve the real economy. Both digital currencies and digital assets should be closely integrated with the real economy to serve the real economy.”
2. Digital yuan hits global financial system? Zhou Xiaochuan: not that serious
On April 21, Zhou Xiaochuan, former governor of the People’s Bank of China, shared his views on hot topics such as global inflation, digital yuan cross-border payments and digital tax, which are of market concern.
Zhou pointed out that the current digital yuan is mainly aimed at small retail sales, such as facilitating cross-border exchanges between merchants and tourists, as well as emerging online shopping. In the field of large cross-border payments such as trade and investment and large services, account exchange and exchange rate play a role in the settlement mechanism.
“As for how much impact or disruption the digital yuan will have on the global financial system, it’s not that serious at all.”