China’s Ex-Finance Official: Crypto Is Key to Digital Economy

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A former high-ranking official from China’s Finance Ministry highlighted that cryptocurrency is a “vital component” of the digital economy, encouraging the country to examine it closely in light of the evolving political climate in the United States.

Former Vice Finance Minister Zhu Guangyao addressed a forum at Tsinghua University in Beijing, stating that despite the risks associated with crypto, China needs to analyze its increasing influence in global financial markets since it is “crucial” for advancing the digital economy, as reported by Sina Finance.

China Prohibited Crypto In 2019

In 2019, China prohibited cryptocurrencies, and its stance towards digital assets has remained negative, even though its Special Administrative Region of Hong Kong is welcoming the crypto sector to enhance its status as a financial hub.

Nevertheless, it is quite rare for a former official to challenge the current policy.

NEW: China’s ex-finance minister, Zhu Guangyao, asserts that cryptocurrency is a key element of the digital economy.

He calls on Beijing to pay more attention to the crypto markets and their future significance. pic.twitter.com/MxPIOc1EOo

— Kashif Raza (@simplykashif) September 30, 2024

Zhu referenced the United States, noting how Donald Trump’s campaign for the presidency has led to a reversal in his attitude towards digital assets, which he now supports publicly. Trump has expressed his desire to become the “crypto president” if elected, aiming to position the US as the global crypto capital.

“If we don’t adopt crypto and Bitcoin technology, other countries, including China, will take the lead, and we cannot allow China to have that advantage,” Trump stated during the Bitcoin 2024 conference in July.

Zhu also pointed out that this year, the US Securities and Exchange Commission (SEC) has approved 11 spot Bitcoin ETFs (exchange-traded funds) for trading on various stock exchanges.

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