Former Chinese finance minister Lou Jiwei says China should change its attitude on cryptocurrencies, particularly in view of the latest events in the United States. Speaking at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, Lou underlined the need of closely examining world bitcoin developments, especially as the US has changed its position by permitting Bitcoin exchange-traded funds (ETFs).
Lou expressed worries about the dangers cryptocurrencies bring, including volatility and their usage in illegal operations like money laundering. He exhorted China’s leaders to pay close attention to these hazards and assess how they may affect the state of finances. Lou claims that the erratic character of cryptocurrencies might cause great volatility in global markets.
He also noted that although the U.S. has earlier been cautious about digital currencies, its admission of Bitcoin ETFs indicates a significant legislative change. China should not overlook these developments given it maintains tight rules on cryptocurrencies since 2021 and controls over half of the worldwide Bitcoin mining operations. To remain competitive, Lou stressed China had to examine the opportunities as well as the hazards in the digital economy.
In the global setting, Lou observed that U.S. mining companies are quickly taking front stage while China’s hegemony in the Bitcoin mining sector is declining. According to Lou, this change indicates how global crypto dynamics are changing and China has to be ready to modify its laws to protect its financial future.
