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- Former Chinese Vice Minister Zhu Guangyao emphasized the need to study crypto’s role in the digital economy despite acknowledging its risks, including market instability and its association with money laundering.
- He highlighted shifting global crypto policies, particularly in the U.S., which has seen pro-crypto changes, such as the approval of Bitcoin ETFs.
Zhu Guangyao, former Vice Minister of the Ministry of Finance of China, recently emphasized the importance of studying crypto. In his speech at the 2024 Tsinghua PBC Chief Economist Forum, held in Beijing on September 28, Zhu underscored the crypto domain’s significance for the digital economy. However, he also called attention to the risks posed by the crypto industry.
China’s Former Minister Offers Take On Crypto
“It does have negative effects,” Zhu declared, according to a Sina News report. However, he added, “We must fully recognize its risks and harm to the capital market, but we must study the latest changes and policy adjustments in the world, because it is a crucial aspect for the development of the digital economy.”
Zhu reviewed the history of crypto over the past decade and addressed the concerns expressed by the United States regarding its impact on global financial security. The United States has always believed that crypto has played a major role in international money laundering and terrorist financing.
In addition, the sharp fluctuations in the value of crypto have a huge impact on the international financial market. However, Zhu pointed out that the United States has seen significant policy changes this year. He spotlighted former U.S. President Donald Trump’s pro-crypto approach, as reported by CNF.
Zhu noted that Trump has publicly stated, “We must embrace cryptocurrency; otherwise, China will replace us.” Moreover, Zhu mentioned that the U.S. Securities and Exchange Commission (SEC) has approved the listing of 11 Bitcoin ETFs in both the stock and futures markets despite initial restrictions. Hence, he believes such a change is also needed in China.
Global Markets Embrace Crypto
Turning to emerging markets and BRICS countries, Zhu highlighted various developments in their approach to crypto. According to the CNF report, Russia, South Africa, Brazil, and India have also taken action to engage with digital assets.
Russia, in particular, has made notable progress by legalizing crypto mining and planning to establish two cryptocurrency exchanges. The country will dedicate these exchanges to build the BRICS stablecoin. India is also moving toward developing a comprehensive crypto regulatory framework.
These developments suggest that if China remains cautious about crypto regulation, other countries will take a leap forward. It could be detrimental to the country, which is already facing a debt crisis. Moreover, Hong Kong has adopted a more open approach amid increased scrutiny of crypto in Mainland China. Hong Kong recently listed spot Bitcoin and Ethereum ETFs, becoming Asia’s first to do so.
