Cryptocurrencies such as bitcoin and stablecoins are an investment tool, and China is studying ways to regulate them, a senior Chinese central bank official said at the Boao Forum on April 18.

At the "Digital Payment and Digital Currency" sub-forum of the Boao Forum for Asia Annual Conference 2021 (AC2021) held in Boao, Hainan, on April 18, Li Bo, deputy governor of the People's Bank of China (PBOC), said a crypto asset is an investment option, not a currency per se, but an alternative investment, and China is studying how to regulate this type of investment.

Li also said that Bitcoin and stablecoins are crypto assets, and they are investment alternatives rather than a currency, and their main role is as an investment tool or alternative investment.

"Many countries, including China, are also studying what kind of regulatory environment should be for such a form of investment," Li mentioned. And he talked about the need to ensure that speculation for this type of asset does not cause serious financial risks.

Li Bo stressed that for stablecoins issued by private companies, they will have to be subject to the same strict regulation as banks or quasi-banking financial institutions if they become a payment instrument in the future.

Also, Mr. Li revealed that China's central bank is considering more scenarios, as well as more cities for digital yuan or RMB pilots. For example, during the upcoming Winter Olympics in Beijing, it will make the digital yuan available not only to domestic users, but also to international users.