As a seasoned crypto investor with a decade of experience navigating the volatile digital economy, I can’t help but find myself nodding in agreement with Lou Jiwei’s cautious yet insightful remarks at the Tsinghua Wudaokou Chief Economists Forum. His concerns about financial stability and potential threats from illegal activities are not new to me, having witnessed firsthand the rollercoaster ride that crypto can be.
At the 2024 Tsinghua Wudaokou Chief Economists Forum held in Beijing, the former Chinese finance minister Lou Jiwei advised China to stay vigilant regarding developments in cryptocurrencies, as reported by Josh O’Sullivan for Cointelegraph. In his speech, as covered by Sina Finance, Lou highlighted potential dangers that digital assets could pose to financial stability. He expressed worries about the extreme fluctuations of cryptocurrencies and their possible connection to illicit activities, such as money laundering, which might jeopardize economic security.
Additionally, Lou pointed out the shifting perspective in America concerning digital currencies, particularly after the SEC’s approval of Bitcoin exchange-traded funds (ETFs) in January. He emphasized the importance for Chinese policy-makers to carefully consider these international trends, as they might hold substantial implications for financial markets.
In his speech, Lou underscored the longstanding perception that digital currencies could jeopardize financial stability. He highlighted concerns such as terrorism financing and Anti-Money Laundering (AML) as significant issues that warrant careful examination, to safeguard our financial systems from potential disruptions.
Lou’s remarks also hinted at China’s ban on Bitcoin (BTC) mining and trading in 2021. However, despite this restriction, China still contributes more than half (55%) of the world’s Bitcoin computational power (hash rate). Interestingly, Ki Young Ju, the CEO of CryptoQuant, pointed out that this dominance is starting to shift. Currently, U.S.-based mining operations manage approximately 40% of global Bitcoin mining activities, indicating a potential transition in influence over time.
In summary, Lou underscored the importance of China keeping abreast of opportunities and threats in the digital economy. His recommendation was for China to stay well-informed and ready to adapt to evolving international regulations on cryptocurrencies, so as to maintain financial security and foster sustainable growth.
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2024-09-30 11:18