Huang Yiping, a former member, Monetary Policy Committee of People’s Bank of China, has expressed his views on Chinese government’s stance on prohibition of cryptocurrency trading. It is believed that Yiping has questioned whether the move will be fruitful for the long-run, as reported by Cointelegraph.
According to Cointelegraph, Yiping showed concerns over China’s financial technology (fintech) future in December, 2022. Reportedly, the former official stated that crypto’s lifetime ban could result in missed chances for the former financial system, with regard to blockchain and tokenisation.
“Banning cryptocurrencies may be practical in the short term, but whether it is sustainable in the long run deserves an in-depth analysis,” Huang stated. He also highlighted the importance of developing a proper regulatory framework for crypto, though admitting that it won’t be an easy task. There is no particularly good way to ensure stability and function as to how cryptocurrencies should be regulated, especially for a developing country, but ultimately an effective approach may still need to be found,” Yiping mentioned.
On the basis of information by Cointelegraph, Yiping focused on the problems related to cryptocurrencies such as Bitcoin, on account of it being a digital asset over currency due to absence of intrinsic value. Also, Yiping spoke on a certain share of Bitcoin transactions being linked to illegal transactions.
Moreover, Cointelegraph noted that China has a reputation for its “blockchain, not Bitcoin” stance. Despite the ban, China reportedly is the second largest Bitcoin miner globally as of January, 2022. Insights from official data stated that eight percent of mainland China customers were involved with the now-bankrupt FTX exchange despite the country’s ban on crypto trading.
(With insights from Cointelegraph)