China’s former finance minister calls for a national study on cryptocurrencies following the record-breaking launch of US Bitcoin ETFs

During a keynote at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, former Chinese finance minister Lou Jiwei emphasized the need for China to thoroughly assess developments in the cryptocurrency space.

As reported by Sina Finance, Lou discussed the potential risks that cryptocurrencies pose, particularly in terms of global financial stability, noting their volatility and their potential role in activities such as money laundering.

He also addressed the changing landscape of US crypto policy, specifically referencing the recent approval by the US Securities and Exchange Commission (SEC) of spot Bitcoin exchange-traded funds (ETFs).

US crypto policy U-turn

Lou underscored the significance of this shift in US policy towards cryptocurrencies. He urged Chinese regulators and policymakers to stay abreast of these global changes, as they could have a significant impact on the broader financial sector.

He highlighted the need for a deep analysis of both the risks and innovations that digital currencies bring, emphasizing that this is especially important given the growing acceptance of cryptocurrencies in US financial markets.

“We must also examine the latest international developments and policy shifts, as they are essential to the evolution of the digital economy,” he stated.

China dominates crypto hashrate

Despite China’s 2021 ban on Bitcoin mining and trading, the country still maintains control over a significant portion of the Bitcoin mining network, accounting for more than 55% of its global hashrate through mining pools.

However, in a recent post on X, Ki Young Ju, CEO of CryptoQuant, noted that this dominance is slowly eroding, with US mining firms now managing around 40% of the global Bitcoin mining operations. Ju explained that US pools are largely focused on serving institutional miners, while Chinese pools are catering to smaller, individual miners in Asia.

For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble

What is your opinion on this particular topic?  Leave us your comment below!  We are always interested in your opinion!