Bank of China's former advisor calls Beijing to reconsider the crypto ban. He argues that the current ban on cryptocurrencies in China is only beneficial in the short term, but in the long term, it could lead to a big missed opportunity.
Huang Yiping, a former member of the Monetary Policy Committee at the People's Bank of China (PBoC), raised the idea of lifting the country's ban on cryptocurrencies, calling for a review of their strict restrictions. He believes that the Chinese government should rethink whether the ban on cryptocurrency trading will be sustainable in the long term, according to Cointelegraph.
According to a transcript released on Jan. 29 by the local financial website Sina Finance, Huang raised concerns about the future of fintech in China in a speech in December. He argued that a permanent ban on cryptocurrencies could lead to missing out on many opportunities in the official financial system, including those related to blockchain and tokenization. He stated that crypto-related technologies are very valuable for regulated financial systems.
“Banning cryptocurrencies may be practical in the short term, but whether it is sustainable in the long run deserves an in-depth analysis,” Huang stated. He also highlighted the importance of developing a proper regulatory framework for crypto, though admitting that it won’t be an easy task. Huang said:
“There is no particularly good way to ensure stability and function as to how cryptocurrencies should be regulated, especially for a developing country, but ultimately an effective approach may still need to be found.”
Despite calling for an in-depth analysis of the potential long-term benefits of cryptocurrencies for China, Huang still stressed that there are many risks associated with cryptocurrencies such as Bitcoin. He argued that Bitcoin is more like a digital asset than a currency because it lacks intrinsic value.
Huang also acknowledged that China's central bank digital currency has not been widely adopted despite being launched many years ago. He added that allowing private institutions to issue digital yuan-based stablecoins remains a very sensitive issue, but it is worth considering the pros and cons.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.