what happen?
Zhu Guangyao, former deputy minister of the Ministry of Finance of China, emphasized that cryptocurrencies pose significant risks to the capital market, but their development should not be ignored.
China maintains strong supervision on cryptocurrency, but in the field of "Bitcoin computing power", China still maintains certain advantages.
China’s former deputy finance minister calls for attention to the development of cryptocurrency
Zhu Guangyao, former deputy minister of the Ministry of Finance of China, pointed out in a speech recently that the rapid development of cryptocurrency will have a profound impact on global financial stability. Zhu Guangyao believes that although cryptocurrency has many risks, especially in international anti-money laundering, anti-terrorism financing and capital markets, countries should still carefully study the international trends and policy changes behind it, because it plays an important role in the digital economy. plays a key role in development.
Looking back at the development history of cryptocurrency, over the past 10 years or so, the U.S. government has taken a cautious attitude towards cryptocurrency, believing that the high volatility and anonymity of cryptocurrency are likely to have a huge impact on the international financial system. Especially in the field of anti-money laundering and counter-terrorism financing, cryptocurrencies are regarded as a major threat to global economic security.
However, since 2023, the United States' attitude and policies towards cryptocurrency have gradually begun to change, and have attracted great attention from countries around the world.
U.S. Policy Shift: Embracing Cryptocurrency, 11 Bitcoin ETFs Approved for Listing
Zhu Guangyao mentioned in the forum that former U.S. President Trump publicly supported cryptocurrency many times during the election campaign and said, "We must embrace cryptocurrency, otherwise China will replace us." This shows that the United States has a strong attitude toward the cryptocurrency industry. There is a change in attitude.
In addition, the United States has gradually become more open in terms of relevant regulations and policies. In particular, the U.S. Securities and Exchange Commission (SEC) approved the listing of Bitcoin and Ethereum ETFs this year (2024), which also officially announced that cryptocurrencies will gradually enter the mainstream financial market and become an important component of the global capital market.
This change in policy also reflects the United States' gradual shift from strong supervision of cryptocurrency in the past to a more open and accepting attitude.
In this regard, Zhu Guangyao called on Chinese policymakers to pay close attention to the latest changes and policy adjustments in the international cryptocurrency field, especially in the context of the development of the digital economy, where cryptocurrency has become a core component of global financial innovation. Although the risks of cryptocurrencies cannot be ignored, countries need to actively explore their development potential within a suitable regulatory framework.
China’s attitude towards cryptocurrencies: Computing power advantage under strong regulation
It is worth noting that China has adopted strict regulatory measures on cryptocurrency since 2021 and has completely banned cryptocurrency trading and mining activities in China.
Because cryptocurrency is regarded as a major risk that "may threaten the country's financial order" due to its high degree of anonymity and decentralization, the Chinese government has multiple considerations behind such a policy, including maintaining financial stability and combating illegal activities. capital flows and preventing capital outflows, etc.
Despite this, China still maintains a certain advantage in global Bitcoin mining computing power.
In the past, China's Bitcoin mining volume once accounted for two-thirds of the global total, and Chinese miners accounted for 71% of the total network computing power. However, after the government announced a strict ban on cryptocurrency-related activities, China's Bitcoin miners fled one after another, and the golden age of China's Bitcoin was also declared over.
However, even under strict suppression by the Chinese government, according to the latest data, China still controls more than 55% of the world’s Bitcoin computing power, and although these mining activities do not operate on the performance, many small miners are still operating in Asia. Continuous mining in various ways.
With the rapid rise of the U.S. mining industry, China's advantage in the mining industry is gradually weakening. U.S. mining pools now control about 40% of the global Bitcoin computing power and mainly serve large institutional miners in the United States.
Faced with this trend, the Chinese government’s strict regulatory policies may further affect its position in the global cryptocurrency industry.
Reference materials: cointelegraph, Sina Finance
More coverage
What would happen if the U.S. government decided to completely “ban” cryptocurrencies?
The first three organizations in Hong Kong to participate in the "Sandbox"! Who is the strongest player? What is the future of the track?
