Former Chinese Finance Minister Urges Crypto Study Amid US Policy Shift on Bitcoin ETFs

Former Chinese finance minister Lou Jiwei emphasized the need for China to carefully examine developments in the cryptocurrency space, particularly in light of the US Securities and Exchange Commission’s recent approval of spot Bitcoin exchange-traded funds (ETFs). Speaking at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, Lou expressed concerns over the risks cryptocurrencies pose to financial stability, citing their volatility and role in money laundering.

Lou highlighted the global implications of cryptocurrencies, noting that price fluctuations could destabilize financial markets. He also pointed to the United States’ evolving approach to digital assets, urging Chinese policymakers to study these international shifts to safeguard China's financial system and foster the growth of its digital economy. Despite a ban on Bitcoin mining, China remains a dominant player in the global Bitcoin mining network, although its influence is gradually declining as US-based mining operations expand.