On the 2024 Tsinghua Wudaokou Chief Economists Discussion board in Beijing, former Chinese language finance minister Lou Jiwei known as on China to maintain a detailed watch on cryptocurrency developments, in accordance with a latest report by Josh O’Sullivan for Cointelegraph. In his speech, as reported by Sina Finance, Lou identified that digital belongings might pose critical dangers to monetary stability. He raised considerations in regards to the volatility of cryptocurrencies and their potential involvement in unlawful actions, together with cash laundering, which might threaten financial safety.
Lou additionally famous the altering perspective in the US towards digital currencies, particularly after the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Alternate Fee (SEC) in January. He urged Chinese language policymakers to take these international developments severely, as they may have vital penalties for the monetary markets.
Throughout his deal with, Lou burdened that digital currencies have lengthy been seen as a danger to monetary stability, with points like anti-terrorism financing and Anti-Cash Laundering (AML) being main considerations. He emphasised that these threats have to be totally examined to guard monetary methods from potential disruptions.
Lou’s feedback additionally mirrored on China’s 2021 ban on Bitcoin (BTC) mining and buying and selling. Regardless of this prohibition, China nonetheless accounts for over 55% of the worldwide Bitcoin hash fee, though CryptoQuant CEO Ki Younger Ju highlighted that this dominance is shifting. U.S.-based mining operations now management about 40% of international BTC mining actions, signaling a gradual change within the steadiness of energy.
Lou concluded by emphasizing the necessity for China to remain conscious of each the dangers and improvements inside the digital economic system. He suggested that China ought to stay knowledgeable and ready to reply to international shifts in cryptocurrency insurance policies to make sure monetary stability and long-term improvement.
Featured Picture by way of Unsplash
