China’s Former Vice Minister of Finance Urges Study of Global Cryptocurrency Trends

China’s former vice minister of finance Zhu Guangyao has called for the country’s officials to study the latest developments around cryptocurrencies and the international adjustments being made to related policies. He believes these changes are essential for China to keep pace with the development of the digital economy.

In a recent interview, Zhu noted that former U.S. President Donald Trump has embraced cryptocurrencies, and the U.S. has approved digital asset-backed spot ETFs (Exchange-Traded Funds), making significant progress in crypto adoption in the U.S. jurisdiction. He also highlighted that these developments hint that major economies are adapting to the rise of cryptocurrencies.

The former minister asserted that Chinese officials should not overlook these global trends, as the digital economy is becoming an important driver of economic growth. He urged government authorities to conduct new, in-depth research into the potential opportunities and risks posed by cryptocurrencies, along with the changes in global regulations, to determine the best approach for China to handle cryptocurrencies.

China’s Crypto Ban and Possible Intentions

Since 2021, China has maintained a strict ban on crypto-related activities, citing concerns over financial risks, fraud, and illegal activities. However, as world-famous political leaders like Donald Trump and other countries are moving toward adopting this innovative sector under new rules and laws, there is speculation about China’s future plans.

China has been cautious, but the former vice minister’s comments hint that the country may be reconsidering its stance. Some experts believe that China’s focus on developing its own Central Bank Digital Currency (CBDC), the digital yuan, might be why they have restricted other forms of digital currencies. By banning cryptocurrencies, China could be aiming to maintain control over its financial system and avoid competition with the digital yuan.

Despite the crypto ban measures in mainland China, China’s interest in the global progress of cryptocurrencies shows that the country may be planning future moves to adapt, especially if international crypto regulations continue to evolve.

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