• An economics professor and former adviser to the People’s Bank of China has urged the Chinese government to reconsider its ban on cryptocurrencies.
• He warned that banning crypto activities could result in missed opportunities that are „very valuable“ to regulated financial systems.
• Despite the ongoing crackdown by the Chinese government, a significant number of cryptocurrency investors are still in China.
Chinese economist Huang Yiping, a professor of finance and economics at Peking University’s National School of Development and a former adviser to the People’s Bank of China, has called on the Chinese government to reconsider its ban on cryptocurrencies. Yiping warned that a permanent ban on crypto-related products could result in missed opportunities in technologies like blockchain, which are „very valuable“ to regulated financial systems.
In September 2021, the Chinese government declared all crypto activities illegal, claiming that crypto disrupted the country’s economic and financial order while providing a breeding ground for criminal activity. This has led to a significant crackdown on crypto-related activities in the country. Despite this, a significant number of cryptocurrency investors are still in China. According to blockchain analytics firm Chainalysis, China is among the top 10 countries with the highest crypto adoption.
Yiping suggested that the Chinese government should be open to the potential of blockchain technology and look at how it could be leveraged to benefit the economy in the long run. He also highlighted the importance of educating the public about the advantages of blockchain technology and how it can be used to drive innovation. He noted that the Chinese government should understand that the potential of cryptocurrencies and blockchain goes beyond the speculative nature of the market.
Yiping stressed the importance of a regulated cryptocurrency market in China, noting that such a market could provide a much-needed boost to the country’s economy. He also warned that a ban on crypto activities could lead to missed opportunities in the long run, as blockchain technology continues to evolve and become more widely adopted.
Overall, Yiping’s comments highlight the importance of understanding the potential of blockchain technology and its potential to revolutionize the financial sector. It is clear that the Chinese government should reconsider its stance on cryptocurrencies in order to ensure that it does not miss out on potential opportunities that could benefit the economy in the long run.