The major shift in the US politician’s stands on digital currency, including cryptic currency. On September 28, China’s former vice Finance Minister, Zhu Guangyao calls for cryptocurrency development amid US policy change.
China’s Formal Vice Finance Minister Calls for Cryptocurrency Development Amid US Policy Change
Talking at the 2024 Tsinghua Wudaokou Chief Economist Forum in Beijing, former Chinese Finance Minister Zhu Guangyao expressed concern about the potential risks posed by cryptocurrencies to financial stability. These risks include their volatility and susceptibility to illicit activities. The newspaper reported, citing a transcript of the speech published by Sina Finance on Sunday.
“It does have negative impacts. We must fully recognize its risks and harm to capital markets, but we must study the latest international changes and policy adjustments. Because he is a crucial aspect of the development of the digital economy.” Guangyao noted.
In his speech, Guangyao urged Chinese policymakers to conduct a thorough study of the associated risk and innovation of cryptocurrency. Plus, he highlighted the implication of the US shift toward cryptocurrency on the global demand.
Moreover, he says that cryptocurrency is important for the development of the digital economy, despite its negative impact. Therefore he urged policymakers.
“Trump campaign platform clearly includes cryptocurrency, and he also made it public that “ we must embrace cryptocurrency, otherwise China will replace us ”, said Zhu.
Moreover, Zhu suggested that China should follow in the footsteps of showing an interest in cryptocurrency development by the BRICS nations like Russia, India, South Africa, and Brazil.
In short, China’s former vice Finance Minister recognized its risk while acknowledging its potential role in the future of finance. Plus, he emphasizes the need for a balanced approach to cryptocurrency.
