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People’s Bank of China Labels Bitcoin as Investment Alternative

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The People’s Bank of China (PBOC) has accepted the concept of cryptocurrency with their introduction of the digital yuan, now Bitcoin is viewed as an investment alternative.

The People’s Bank of China (PBoC) has taken a U-turn on their stance on Bitcoin to express their affirmation on the digital asset in recognition as an investable asset. This is big news to the cryptocurrency community considering the power of China and its regulation effect on the Bitcoin price.

According to Li Bo, the deputy governor of the People’s Bank of China (PBoC), Bitcoin and stablecoins are regarded by them as investment alternatives. 

“They are not a currency per se. And so the main role we see for crypto assets going forward, the main role is investment alternative, ” he said. 

This statement has taken away the burden of uncertainties that were generated amid the cryptocurrency market bull-run. In 2018, when the cryptocurrency market led by Bitcoin set a new all-time high record inviting many more investors into the industry, China launched a crackdown on cryptocurrency exchanges forcing the market to crash in a two-year-long struggle. Also, ICOs were banned in China in 2017 coupled with the shutdown of the exchanges. This declaration may send the price even higher as investors are assured that the 2018 crackdowns will not happen again. 

Some key industrial players including Flex Yang, the CEO, and founder of Babel Finance, believes that this comment from the PBoC is progressive. Vijay Ayyar, the head of business development at Luno Cryptocurrency Exchange also said that the comment is significant and different from their previous stance on the public investment in cryptocurrency. Ayyar believes that the decision comes from the growing asset class of Bitcoin that leaves them with no option but to regulate it. 

The Chinese government has understood that Bitcoin is viable and established. Ayyar added that this announcement will be a high boost to the cryptocurrency industry in China and globally. The Bitcoin price is currently hovering around the $57,000 price zone and the effect of this comment can send the price into a huge price point. 

The People’s Bank of China (PBOC) has long accepted the concept of cryptocurrency with their introduction of the digital yuan. This digital yuan which is a stablecoin will have some concept of cryptocurrency but different from Bitcoin as it will be issued by a third party to take out cash and coins from circulation.

Li in the interview disclosed that they recognize Bitcoin as an investment alternative. China and other countries are still looking into it to find the best kind of regulatory requirement for its operation. Li believes that the main challenge they have with cryptos is the speculation of such assets, and so they have to come up with some kind of regulatory requirements, which may be minimal, to create financial stability. He added that the Central Bank will maintain its current regulation on cryptocurrencies, and according to the industry key players, they will monitor various governments for any shift of regulation. 

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Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.



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Altcoin

Ethereum price closes in on $4K as Shiba Inu (SHIB) steals Dogecoin’s thunder

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The crypto market has rallied into the weekend as Ether (ETH), Dogecoin (DOGE) and Shibu Inu (SHIB) hit new all-time highs as they lead the pack of altcoins up the market cap mountain. 

Much of the excitement behind Dogecoin’s rally has been attributed to the upcoming appearance of Elon Musk, the CEO of Tesla and a Dogecoin advocate, on the popular Saturday Night Live comedy sketch show. Ether, on the other hand, continues to rally toward $4,000 as institutional interest in the altcoin soars and the approaching London hard fork have investors feeling extra bullish.

Data from Cointelegraph Markets and TradingView shows that after briefly dipping to a low of $3,418 in the late hours on May 8, Ether price regained its composure and proceeded to vault 13% to reach a new all-time high at $3,958. 

ETH/USDT 4-hour chart. Source: TradingView

While some have been surprised by the bullish movement from the second-largest cryptocurrency by market capitalization, it comes as no shock to Cointelegraph market analyst Marcel Pechman who recently detailed how Ether “could easily sustain until $5,000.”

Bitcoin (BTC) has used its time out of the spotlight to quietly climb higher with bulls now attempting to hold the price above $59,000.

Canine-themed ‘meme coins’ lead the pack

Dogecoin has emerged as one of the biggest mainstream attention grabbers in cryptocurrency history as scores of new users got their first taste of crypto trading from the popular meme token.

The week-long build-up in momentum for DOGE led to a 25% surge in the early trading hours on Saturday that lifted its value to a new all-time high at $0.74 before profit-taking dropped the price back below $0.68.

DOGE/USDT 4-hour chart. Source: TradingView

Thanks to the global attention that Dogecoin has attracted, a number of canine-themed projects have arisen, including Shiba In (SHIB), which burst onto the scene following a two-day rally that saw its value launch 1,100% higher to establish a new record high at $0.0000178.

The overall cryptocurrency market cap now stands at $2.463 trillion and Bitcoin’s dominance rate is 44.8%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.