China's former finance minister urges crypto study after US Bitcoin ETF shift
Lou Jiwei stressed that China should assess the development of cryptocurrencies, especially as the US changes its policy on Bitcoin ETFs.
In a speech at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, former Chinese finance minister Lou Jiwei urged China to pay close attention to advances in cryptocurrencies.
According to Sina Finance's report of the speech, the former minister highlighted the potential risks that crypto poses to financial stability, including its volatility and role in money laundering.
He also noted the changing attitude of the United States towards cryptocurrencies, especially given the US Securities and Exchange Commission's approval of Bitcoin.
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exchange-traded funds (ETFs).
He stressed the importance of studying the risks and innovations of the digital economy, especially given the acceptance of cryptocurrencies in the US financial markets.
“[...] we also need to study the latest international changes and policy adjustments because they are very important for the development of the digital economy.”
Related: China still controls 55% of Bitcoin hashrate despite crypto ban
China dominates crypto hashrate
Despite the country's complete ban on BTC mining and trading, which came into effect in 2021, China controls over 55% of the BTC mining network through mining pools.
In a September 23 post, Ki Young Ju, founder and CEO of CryptoQuant, highlighted that BTC mining dominance is slowly shifting to US mining companies.
Ju revealed that US pools manage around 40% of all BTC mining operations, primarily serving institutional miners in America, “while Chinese pools support relatively smaller miners in Asia.”#ChinaCrypto
