- Zhu Guangyao calls for China to study global crypto developments, emphasizing their importance to the digital economy.
- Trump’s endorsement of cryptocurrencies and the approval of Bitcoin ETFs signal a major shift in U.S. crypto policy.
- China’s Bitcoin mining activity persists despite disruptions, proving its continued role in the global cryptocurrency market.
China’s former vice minister of finance, Zhu Guangyao, recently highlighted the need for China to study the latest international developments in cryptocurrency. Speaking at the 2024 Tsinghua PBC Chief Economist Forum in Beijing, Zhu highlighted that understanding these changes is essential for the growth of China’s digital economy.
While he acknowledged the risks associated with cryptocurrency, he emphasized the importance of staying informed about international policy shifts. He pointed to the United States’ changing stance, with former President Donald Trump advocating for cryptocurrencies and the U.S. Securities and Exchange Commission approving several Bitcoin ETFs.
U.S. Shifts Toward Cryptocurrency
Zhu noted that over the past decade, the U.S. has consistently regarded cryptocurrency as a threat to international financial stability, particularly in anti-money laundering and counter-terrorist financing efforts.
Sharp fluctuations in cryptocurrency values further complicated the U.S. perspective, contributing to concerns about its impact on global markets. However, U.S. policy has shifted in 2024.
Trump’s public support for embracing cryptocurrencies signals a significant change in the country’s stance, especially with his remarks warning that China might surpass the U.S. in this area.
In addition to Trump’s statements, the SEC’s approval of 11 Bitcoin ETFs in both the stock and futures markets was pivotal in the crypto market. This move indicates a recognition of the growing role that cryptocurrencies play in financial systems, particularly in developed markets like the U.S.
Cryptocurrency Trends Among Emerging Economies
Zhu also turned his attention to the actions of emerging market countries and BRICS nations. He highlighted how Russia, South Africa, Brazil, and India have all initiated steps in response to the global crypto market.
This collective shift highlights a broader international trend that China cannot ignore. The former vice minister emphasized the importance of following these developments to remain competitive in the digital economy.
China’s Mining Activity Persists Despite Policy Shifts
Although media reports previously suggested that China had banned Bitcoin mining, public data contradicts these claims. While mining operations faced disruptions, mining activity continued in various regions.
Notably, the Cambridge Centre for Alternative Finance reported that certain areas in China maintained high levels of mining output despite the challenges. The temporary dip in Bitcoin hashrate, following official policy announcements, led to misunderstandings about the status of mining in the country.
However, Zhu’s comments reaffirm that China’s cryptocurrency infrastructure remains a notable player in the global markets, making it essential for the country to stay informed on international policy adjustments.
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