China's central bank adviser considers Bitcoin to be a financial asset and not money, calls for the government to create its own digital currency.
The widespread adoption of Bitcoin among the masses has made it part of the global economic system. While the number of Bitcoin users continue to grow, there is still a lack of clarity about the cryptocurrency’s status in the financial system. Countries like Japan have already assigned a legal position to Bitcoin as a currency, and there are others that are mulling regulations to bring the digital currency within the purview of the country’s legal structure.
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The widespread adoption of Bitcoin among the masses has made it part of the global economic system. While the number of Bitcoin users continue to grow, there is still a lack of clarity about the cryptocurrency’s status in the financial system. Countries like Japan have already assigned a legal position to Bitcoin as a currency, and there are others that are mulling regulations to bring the digital currency within the purview of the country’s legal structure.
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This is good. If they don't consider it as money, the Chinese will regulate it less.
The PBOC has a lot of influence on how Chinese invest and consequently they can influence global Bitcoin prices.
That can be a better to look at Bitcoin...as a financial asset and not as a money. Anyway, it does not matter matter much how does the Chinese authorities can be viewing Bitcoin as far as their view is concerned and maybe also as far as taxation is concerned, we can all use Bitcoin as a money anyway because we can exchange it for fiat money due to its intrinsic value. I just hope that China can have a more relaxed regulations in placed for Bitcoin.
However, this is not what many can be expecting. I would look to Japan as the leader in the recognition of Bitcoin because in there it is already a currency and the country will soon start reaping the many financial benefits Bitcoin can be bringing to the country.
As to introducing their own national currency, that is already an admission that Bitcoin is really working. Hope they can get a better model because so far countries which introduced their own coins have dismal record of success. All I can say is: goodluck China!
