Economics professor and former adviser to the People’s Bank of China China is asking the Chinese government to reconsider its ban on cryptocurrencies. He warned that banning cryptocurrency activity could miss an “extremely valuable” opportunity for the regulated financial system.
Chinese economist warns of lost opportunities due to cryptocurrency ban
A former adviser to China’s central bank, the People’s Bank of China (PBOC), said China He called on the government to It will reassess the ban on cryptocurrencies, the South China Morning Post reported Monday.
Huang Yiping served as a member of the Monetary Policy Committee of the People’s Bank of China from 2015 to 2018. He is currently a professor of financial economics at the National Development School of Peking University.
Former central bank adviser admits crypto ban may be realistic for China in the near term, but government will consider whether such policy is sustainable in the long run He warned that a permanent ban on cryptocurrency-related products could miss opportunities for technologies like blockchain that are “extremely valuable” to the regulated financial system.
In September 2021, the Chinese government declared all cryptocurrency activities illegal, accusing cryptocurrencies of disrupting the country’s economic and financial order and providing a breeding ground for criminal activity. claimed.
Despite continued crackdowns by the Chinese government, there are still a significant number of crypto investors in China. One of the top 10 countries. Moreover, his FTX bankruptcy filing last November showed that mainland Chinese users accounted for 8% of his customer base on the collapsed cryptocurrency exchange. FTX had over 5 million active users before he collapsed.
Additionally, cryptocurrency mining activity is on the rise in China. Traffic from China accounted for about 20% of Bitcoin’s total hash rate from September 2021 to January 2022, according to Cambridge Center for Alternative Finance (CCAF) data. Country… As time passes since the ban was in place, underground miners appear to be more confident and content with the protection provided by local surrogate services.
Huang said the PBOC is looking to promote the adoption of Central Bank Digital Currencies (CBDCs). The digital yuan or e-CNY is still in the trial stage, but the central bank started counting digital currencies as part of the money supply last December. However, former People’s Bank of China Research Director Xie Ping recently said his CBDC use in China was “low” and “very inactive.”
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