The former Chinese vice minister of finance calls for a study on cryptocurrencies in light of developments in the United States following the approval of Bitcoin ETFs.
According to reports from Sina News, on September 28, during a speech at the Tsinghua Wudaokou Chief Economists Forum 2024 in Beijing, Zhu Guangyao, former Chinese deputy finance minister, emphasized the importance for China to closely monitor developments in the digital asset sector.
Guangyao made particular reference to recent changes in the United States, specifically the approval by the SEC of 11 exchange-traded financial products (ETFs) based on Bitcoin. The former deputy minister urged Chinese lawmakers to study these changes to better understand the implications of these innovations for the digital economy.
Risks to global financial stability
Guangyao highlighted the potential risks to financial stability stemming from the cryptocurrency sector, including volatility and their potential use in illegal activities such as money laundering and terrorism financing. The former deputy minister emphasized the need for a thorough analysis of these risks to protect financial systems from the possible harm that cryptocurrencies could cause.
Guangyao stated:
“Crypto 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.”
Change of approach in the USA
A central point in Guangyao’s speech was the recent change in United States policy regarding digital assets, particularly with the approval of spot Bitcoin ETFs. Guangyao emphasized the importance for Chinese policymakers to learn and study such international changes, considering their impact on the development of an increasingly digital economy. These changes should not be overlooked because they play a crucial role in future global economic evolution. Finally, Guangyao directly pointed to statements by Republican candidate Donald Trump as a reason for further action by Beijing:
“Trump’s campaign platform explicitly included cryptocurrencies, and he also publicly stated: We must embrace cryptocurrencies, otherwise China will replace us.”
