China’s Former Deputy Finance Minister Makes a Critical Cryptocurrency Call to His Country

At the 2024 Tsinghua PBC Chief Economist Forum held in Beijing, China's former Vice Minister of Finance Zhu Guangyao said that China should closely monitor international developments on cryptocurrencies and related policy changes.

Understanding these changes is crucial to the advancement of China's digital economy, he argued.

Zhu acknowledged both the potential benefits and risks of cryptocurrencies in his speech. He drew attention to their negative impacts, saying, “Cryptocurrencies have negative impacts, and we must fully acknowledge their risks and the damage they cause to the capital market.” However, Zhu noted that it is important for China to be aware of international trends, as cryptocurrencies play an important role in the development of the global digital economy.

Zhu brought up the United States’ changing stance on cryptocurrencies, particularly in the past year. While the U.S. has long viewed cryptocurrencies as a threat to international efforts to combat money laundering and terrorist financing, recent developments point to a policy shift.

Zhu noted that Trump’s campaign platform included digital currencies, referring to former US President Donald Trump’s embrace of cryptocurrencies. Trump was quoted as saying, “We must embrace cryptocurrencies, otherwise China will replace us.”

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Zhu also pointed out that the approval of 11 Bitcoin ETFs by the US Securities and Exchange Commission (SEC) is a significant step in the mainstream acceptance of cryptocurrencies within the US financial system.

Zhu also noted that other major emerging markets, including BRICS countries like Russia, South Africa, Brazil, and India, are taking steps to address cryptocurrencies in their financial and regulatory systems.

*This is not investment advice.

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