- A former government official has urged China to review its stance against crypto.
- The official called for a keen study on shifting policies in the U.S. and BRICS nations.
- According to him, this is crucial in fostering China’s digital economy.
The former vice minister of China’s Ministry of Finance, Zhu Guangyao, has urged the country to examine global policy adjustments on cryptocurrencies as part of the development of the digital economy.
Guangyao’s remarks came amid a recent Chainalysis report indicating that over-the-counter (OTC) crypto brokers in China have witnessed a surge in activity, with investments topping $75 billion in the past nine months. Per the report, Chinese citizens have turned to crypto to preserve wealth in the wake of negative sentiment towards the country’s economy.
China Urged to Promote Crypto Development
During a speech at the 2024 Tsinghua PBC Chief Economist Forum in Beijing, Guangyao urged China to review its stance against digital assets and pay attention to the industry’s shifting policies and adjustments globally.
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“It does have negative effects, and we must fully recognize its risks and harm to the capital market, but we must study the latest international changes and policy adjustments because it is a crucial aspect to the development of the digital economy,” Guangyao stated.
Guangyao noted that the U.S. digital asset policy has evolved significantly this year despite the American government previously labeling crypto as a “huge destructive power” on international anti-money laundering and anti-terrorist financing.
Per the former government official, the upcoming U.S. presidential election may also introduce additional policy changes following the approval of spot Bitcoin exchange-traded funds.
“Trump’s campaign platform explicitly included cryptocurrencies, and he also publicly stated: We must embrace cryptocurrencies, otherwise China will replace us,” Guangyao added.
Guangyao further implied that China should follow in the footsteps of emerging markets and BRICS countries, including Russia, South Africa, and Brazil, which have taken action on crypto.
Read how a Trump election victory might influence China’s crypto policy:
Will China Lift Crypto Ban if Trump Wins?
Stay updated on China’s CBDC pilot in Hong Kong:
Hong Kong Bolsters China’s CBDC Pilot with Local e-CNY Wallets
