China is a country known for supporting the “Blockchain Instead of Bitcoin” narrative. The country has tried to contain cryptocurrencies more than once, but it seems it is now softening its stance and even taking a slightly positive approach to Bitcoin.
Bitcoin as an alternative investment vehicle
At the Boao Asia Forum on April 18, former Central Bank Governor Zhou Xiaochuan and current Central Bank Deputy Governor Li Bo gave their views on Bitcoin and cryptocurrencies.
We believe that crypto assets should play an important role in the future, either as an investment vehicle or as an alternative investment. Many countries, including China, are also studying it as an investment tool. “
Zhou Xiaochuan added that people don’t necessarily need to know whether the technology behind digital currencies is centralized or decentralized because “ordinary people don’t necessarily understand what the system behind it is”. He also stated that under no circumstances should digital currencies be used for illegal activities such as money laundering, tax evasion, drug or arms trafficking, or gambling.
In addition, Li Bo said that both bitcoin and stablecoins are “encrypted assets” and that they are an investment option, not a currency.
When used as an investment vehicle, many countries including China are also investigating what kind of regulatory environment should be in place for such an investment method. Although this regulation rule is the minimum regulation rule, there are still regulation rules. “
The senior official doubled the weight of legislation to ensure that “speculating in such assets does not create serious financial risks.” Ultimately, despite the evidence of a more positive approach to Bitcoin and other cryptocurrencies, Bo said they would stick with current policies and practices.
Positive market reaction
Yesterday there was a major market-wide crash in all cryptocurrencies. As reported by CryptoPotato, Bitcoin fell below $ 52,000, Ether below $ 2,000, etc., resulting in more than $ 10 billion worth of liquidations across the board.
Today, however, it looks better. The majority of cryptocurrencies are on the recovery path. BTC is already testing $ 58,000.
ETH is trading at around $ 2,250, the BNB has reclaimed $ 500, while other large and mid-cap altcoins are also seeing significant gains.
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