Last week, spokespersons for two of the world’s largest and most important central banks, Robert Kaplan of the Federal Reserve and Lo Bi of the People’s Bank of China (PBOC), gave insight into their views on Bitcoin and how central banks currently think about the asset.
Kaplan, the current president of the Federal Reserve Bank of Dallas and former member of the Federal Open Market Committee, said this during the Bitcoin conference of Texas A&M University’s Mays Business School:
“At this point it is clear that it is a store of value … Obviously it is changing a lot in value, which could prevent it from spreading too far as a medium of exchange and wide acceptance, but that could change.”
Kaplan’s comments are quite significant, as bitcoin’s recognition as a store of value further legitimizes holdings that exceeded $ 1 trillion in market cap earlier this year.
In addition, Bo, a deputy governor of the PBOC, had this to say at the Boao Forum for Asia about bitcoin and cryptocurrency assets.
“We believe Bitcoin and stablecoins are encrypted assets,” said Li. “Encrypted assets are an investment option, not a currency itself. It is an alternative investment, not a currency itself. Therefore, we believe that crypto assets should play an important role in the future, either as an investment tool or as an alternative investment. “
The comments can be seen as strong statements of support from officials working at two of the largest central banks of the two dominant global superpowers. The dynamic gets even more interesting as the conversation about game-theoretical competition between China and the United States has intensified in recent weeks, with comments from technologist Peter Theil and US House Minority Leader Kevin McCarthy lighting the flame, for example.
[Bitcoin] is something that those in charge of regulating, those in government making policy, are beginning to better understand what it means for the future as other countries are making progress, especially China, ”McCarthy said recently. “I don’t want America to fall behind. I want the next century to be ours. “
It is clear to those with an understanding of Bitcoin that there is great geopolitical significance with regard to the nation states adopting it, and the weekend’s comments offer yet another interesting development in bitcoin’s acceptance as a monetary asset in the old. financial system.