Another Win for Bitcoin, China now calls it an “Investment Alternative”

Bitcoin Hits Another Milestone, as a top government official of China claims Bitcoin as an “Investment Alternative”. This incident is notable considering the efforts that the Chinese government has put in cracking down on cryptocurrencies.

In 2017, the Chinese government had banned ICOs and crypto exchanges like Binance exchange that had to set up shop elsewhere. Recent comments by Li Bo- Deputy Head of the People’s Bank of China, suggest that China is finally softening its hard stance against cryptos like Bitcoin.

During a session on CNBC, Li Bo said that although Bitcoin and stablecoins aren’t actual currencies, they can be looked at as crypto assets and, therefore, investment alternatives.

As investment alternatives, “many countries, including China, are still looking into it and thinking about what kind of regulatory requirements. Maybe minimal, but we need to have some kind of regulatory requirement to prevent ... the speculation of such assets to create any serious financial stability risks,” Li said.

Analysts believe that China is now relaxing its strong restrictions against Bitcoin to support its upcoming CBDC. That could also explain why Li Bo put Bitcoin and Stablecoins in the same basket as ‘investment alternatives.”

China holds the world’s largest population. If Bitcoin restrictions are lifted, the crypto’s market could see a massive influx of new money from Chinese buyers, ultimately driving up the value of BTC. This could be one of the most incredible wins for BTC as it would be accepted in the world’s largest population. China’s action could also prompt other governments that have been anti-cryptos to accept them as well.

Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.