“Li Yang, a Chinese economist who has served as an adviser to the Central Bank of China, said that Bitcoin is not a scam. It is a new data asset. People can invest like gold. But it is not a currency, nor is it optimistic about the application of El Salvador,” Wu Blockchain tweeted on Thursday.
This statement followed the recent announcement of El Salvador to use its volcanoes to support Bitcoin mining. Before El Salvador, China urged banks and financial institutions to stop offering crypto-related services to their clients, including account opening, transfers, and those involving crypto transactions. This wasn’t the first time China chased companies to halt from supporting crypto.
When Elon Musk announced that Tesla wouldn’t accept Bitcoin as payment anymore, China also shared some news about financial institutions ordering to halt crypto businesses. The combination of these activities affected the market so bad that Bitcoin dropped to nearly $30,000 after months of playing around $50-$60k.
Despite China not supporting Bitcoin and other cryptocurrencies, Li Yang gave reassurance that people can invest in Bitcoin. It’s a digital asset that doesn’t scam investors. It’s like gold where people can put their money into. However, using it as payment is a different thing. The Chinese economist is not as optimistic as El Salvador when it announced the upcoming Volcanic Bitcoin mining.
Wu Blockchain added, “We have seen that many economists in China have spoken about Bitcoin recently. No one supports the prohibition of Bitcoin. Their general view is that Bitcoin is not a currency, but an investment product like gold.”