During a speech at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, former Chinese finance minister Lou Jiwei urged China to closely examine advancements in cryptocurrency.<\/p>\n
According<\/a>\u00a0to Sina Finance\u2019s report of the speech, the ex-minister highlighted the potential risks crypto poses to financial stability, including volatility and their role in money laundering.<\/p>\n He also noted the United States\u2019 shifting stance toward cryptocurrencies, particularly in light of the US Securities and Exchange Commission approval of spot Bitcoin<\/p>\n BTC $65,699.03<\/p>\n<\/div>\n exchange-traded funds (ETFs).<\/p>\n Related:\u00a0<\/strong><\/em>Bitcoin targets $70K as stablecoin inflows and China stimulus boost rally<\/strong><\/em><\/a><\/p>\n Lou warned of the negative implications cryptocurrencies could have on global markets, especially due to the extent to which price fluctuations can create financial instability.<\/p>\n He highlighted that digital currencies have been perceived as a long-established threat to financial security, specifically noting areas such as anti-terrorism financing and Anti-Money Laundering (AML).<\/p>\n The ex-finance minister said these risks should be carefully considered and examined to safeguard financial systems against potential shocks.<\/p>\n Related:\u00a0<\/strong><\/em>The key misunderstanding with China\u2019s purported BTC hashrate dominance<\/strong><\/em><\/a><\/p>\n Lou pointed out the major policy shift in the US.<\/p>\n The former finance minister urged Chinese policymakers to pay close attention to these international shifts in the perception of crypto assets.<\/p>\n He stressed the importance of studying the risks and innovations of the digital economy, particularly in light of the US acceptance of cryptocurrencies in its financial markets.<\/p>\n \u201c[…] we also need to study the latest international changes and policy adjustments because they are crucial for the development of the digital economy.\u201d<\/p><\/blockquote>\n Related:\u00a0<\/strong><\/em>China still controls 55% of Bitcoin hashrate despite crypto ban<\/strong><\/em><\/a><\/p>\n Despite the country\u2019s blanket ban on BTC mining and trading, which went into effect in 2021,\u00a0China controls over 55%<\/a>\u00a0of the BTC mining network via mining pools.<\/p>\nGlobal financial stability concerns<\/h2>\n
US crypto policy U-turn<\/h2>\n
China dominates crypto hashrate<\/h2>\n