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Bitcoin and Other Digital Assets Now Being Considered Investments but Not Medium-of-Exchange by Chinese Policymakers
May 2, 2021 @ 7:27 pm By Omar Faridi
China’s virtual yuan has been in development for the past 7 years (since 2014). Recently, Chinese officials had noted that Bitcoin (BTC) was not really a currency but they do think it’s a form of investment.
Regulators in China are also eager to explore the use of crypto-assets and their underlying blockchain or distributed ledger technology (DLT). During the past few years, the nation’s research communities have been developing rating systems for digital asset projects and have also been carrying out pilots of the digital yuan in major cities like Shanghai and Shenzhen.
China is keen on using evolving blockchain technology that underpins cryptocurrencies to help build its digital economy and quicken adoption of its sovereign digital currency, analysts say, while avoiding the risks that decentralised virtual networks pose to the financial system. Chinese policymakers have recently ruled out cryptocurrencies as mediums of exchange but tacitly supported them as investment vehicles - as long as they serve the real.