China should be studying the development of crypto in international markets, even with all the negative effects surrounding it. This is the recommendation that Zhu Guangyao, a former Finance vice minister, made during a speech at the 2024 Tsinghua PBOC Chief Economist Forum.
Guangyao, who served in the position from May 2010 to June 2018, believes that cryptocurrencies are a main element in the development of digital economies, and as such, must be examined.
On the issue, he stated:
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.
An institutional push has powered the U.S.’s newfound interest in crypto and its consideration of the asset class. Guangyao explained that before, the U.S. had a negative stance on crypto, believing it had a “huge destructive power” as a tool for money laundering and terrorism financing purposes in international markets.
However, now with the approval of several exchange-traded funds (EFTs) for bitcoin and ether, the country’s policy has shifted, and crypto has become more generalized. Guangyao also mentioned that former President and Republican Candidate Donald Trump included crypto as a key element in his campaign, explaining that the U.S. should embrace it to avoid being replaced by China.
While cryptocurrency trading and mining have been banned in China, they faced a resurgence as stocks and real estate investments slumped before the government announced the recent stimulus to reactivate the country’s economy.
