According to a recent report by Josh O'Sullivan for Cointelegraph, former Chinese Finance Minister Lu Jiwei urged China to keep a close eye on the development of cryptocurrencies at the Tsinghua Wudaxiao 2024 Chief Economists Forum in Beijing.
In his speech, Lu said that digital assets could pose a serious risk to financial stability, Sina Finance reported. He expressed concern about the high volatility of #cryptocurrencies and their potential involvement in illegal activities, including money laundering, which could threaten economic security.
Mr. Lu also noted the changing attitudes toward digital currencies in the US, especially after the US Securities and Exchange Commission (SEC) approved a #bitcoin spot exchange-traded fund (ETF) in January. He urged Chinese policymakers to take these global developments seriously, as they could have a significant impact on financial markets.
In his speech, Lu emphasized that digital currencies have long been seen as a risk to financial stability and that issues such as terrorist financing and anti-money laundering (AML) are of great concern. He emphasized the need to carefully analyze these threats in order to protect the financial system from potential disruptions.
n Lu's comments also reflected China's ban on bitcoin (BTC) #mining and trading in 2021. Despite this ban, China still accounts for more than 55% of the global bitcoin hashrate, but Ki Yan Ju, CEO of CryptoQuant, emphasized that this dominance is changing. U. S. mining companies now control about 40% of global #BTC mining, indicating a gradual shift in the balance of power.
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