According to Chinese economist Huang Yi-ping, China should reconsider its crypto ban. He warned that the ban on crypto activities could lead China to miss opportunities in the development of digital technologies. He then urges the government to change its crypto regulations.
Risks for China
Huang Yi-ping is an economics professor at Peking University and a former member of the monetary policy committee of the People’s Bank of China (PBOC). He was also Managing Director and Chief Economist for Asia at Citigroup. He told a financial summit in December that China should reconsider its ban on crypto activities. China may miss opportunities in the development of digital technologies.
Indeed, the country risks missing opportunities that are “very valuable” for regulated financial systems. These include crypto-related technologies including tokenization, distributed ledger, and blockchain. According to this former head of the PBOCbanning crypto transactions is not sustainable for China in the long term.
The Chinese government should review its crypto policy
This former adviser to the Chinese central bank nevertheless acknowledged that the crypto ban may be necessary for the time being. It aims to fight against money laundering. Allowing crypto and other digital assets to trade freely will bring more problems than short-term benefits, he said. However, he believes that the government must ask itself whether such policies will be sustainable in the long term.
As a reminder, China banned all crypto transactions in September 2021. It thus promoted its own CBDC digital currency and blockchain technology. Huang Yi-ping also touched on digital yuan interest payment issues and the use of CBDC for cross-border payments. Former PBOC Research Director General Xie Ping said the use of Chinese CBDC was still low and very dormant.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
