Speaking at the Tsinghua Wudaokou 2024 Chief Economists Forum in Beijing, former Chinese finance minister Lu Zhiwei urged China to keep a close eye on the development of cryptocurrencies.
In a speech reported by Sina Finance, the former finance minister noted the potential risks that #cryptocurrencies pose to financial stability, including volatility and their role in money laundering.
He also mentioned the changing attitudes toward cryptocurrencies in the U. S. , especially in light of the SEC's approval of a #bitcoin exchange-traded fund (ETF).
Mr. Lu warned of the negative impact of cryptocurrencies on global markets, particularly that price volatility could lead to financial instability.
He stressed that digital currencies have long been recognized as a threat to financial security, highlighting areas such as combating terrorist financing and anti-money laundering (AML).
The former finance minister said that these risks must be carefully considered and examined to protect the financial system from potential shocks.
Lu pointed to a major shift in U. S. policy, where the SEC's stance on bitcoin (BTC) and related ETFs has changed from rejection to approval.
The former finance minister urged Chinese policymakers to pay close attention to the changing international perception of cryptoassets.
He emphasized the importance of examining the risks and innovations of the digital economy, especially in light of the U. S. adoption of cryptocurrencies in its financial markets.
It is also worth examining recent international developments and policy adjustments.
Despite a complete ban on #BTC #mining and trading in 2021, China controls more than 55% of the BTC mining network through mining pools.
In a September 23 post, X Kee Young Ju, founder and CEO of CryptoQuant, emphasized that this dominant position in BTC mining is gradually ceding to U. S. mining companies.
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