PBoC’s Governor Hints at New Crypto Regulations

Li Bo, the deputy governor of the Central Bank of China, People’s Bank of China, appeared in an interview at Boao Forum for Asia (BFA) on the 18th of April 2021, where he spoke on various aspects related to cryptocurrencies. He mentioned in the interview that the Central Bank of China is working on the new and advanced cryptocurrency regulations as he said that along with China, few other countries are also contemplating the new regulatory strategies for cryptocurrencies to be adopted as an investment vehicle.

It also appeared on the scenario that Colin Wu, the well-known Chinese blogger, is of the same view that digital currencies like Bitcoin (BTC) should be alternative options for investment and trading tools instead of the local currencies. The central bank of China has figured out the nascent regulatory framework which will suit the best for financial assets by keeping the current policies in contact. The whole discussion looked for the safe side, which is of prime importance to avoid any financial risk.

The deputy governor of PBoC also claimed that if stablecoins which are issued privately are able to secure more traction as a payment tool, then they are likely to face more rigorous regulations than BTC. In addition, he also stated that if cryptocurrencies get integrated with the real economy, they will play a major and significant role in the coming time. It is worth noting that recently Chinese economist, educated from the United States, was selected as the deputy director of PBoC.

Digital yuan stepping ahead

It is well acknowledged that China is the leading country in the race to roll out its own CBDC (central bank digital currencies). China is currently in the testing phase of central bank digital currency and has already conducted various pilot tests in different cities like Suzhou, Chengdu and Shenzhen.

Moreover, while speaking at the annual gathering, Bo also said that testing the CDBC in these three cities is mere beginning in China, and the government is planning to extend the pilot program of digital yuan into several other cities of China as well which is more likely to be done in the coming time. It is reported that China is foreseeing the launch of CBDC in Beijing before the 2022 winter Olympics.

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