Ex-Chinese Finance Minister Calls To Re-evaluate Cryptocurrency Ban

[TomPluz]

At the 2024 Tsinghua PBC Chief Economist Forum, former Chinese Vice Minister of Finance Zhu Guangyao urged China to re-evaluate its approach to the crypto industry.

He cited the evolving international stance on digital currencies, particularly in the United States, where the asset class has gained political support from key figures like U.S. presidential candidate Donald Trump.

Zhu acknowledged the risks and challenges posed by crypto but emphasized the need for China to study global trends and policy adjustments closely.

Zhu also mentioned that emerging economies, including BRICS nations such as Russia, South Africa, Brazil, and India, are also taking steps to incorporate cryptocurrencies into their financial systems.

Get more details from here.

China is considered to be a huge market for cryptocurrency but in 2013 the government of Xi Jinping decided to put a blanket ban on cryptocurrency...and so this market withered. The government then was emphasizing the many negative effects of cryptocurrency to the economy and the people (like scams and frauds using crypto) but there seems to be some people in China who are thinking that this stance must be revisit paving the way for the market to slowly take in crypto again. I am sure that the government would not easily budge on its stand and it can take a lot of convincing on its part to change its ban...but we are getting some light in the darkness.

Are you positive that eventually China will one day open its market?

[yhiaali3]

I am optimistic that China will eventually open its market to cryptocurrencies one day like the United States does, this is a fact that everyone knows that the development cannot be stopped.

It seems that China has begun to realize that it made a big mistake by banning cryptocurrencies after it was one of the largest countries in the world using cryptocurrencies, the Chinese economy has lost a lot because of this ban, especially the mining ban because this industry used to generate billions of dollars for the Chinese government.

The other reason, according to my expectation, is competition with the United States, as China certainly does not want to leave the United States alone in the cryptocurrency market.

[ABCbits]

I don't know anything about this ex-minister, but it's weird he mention Trump supporting cryptocurrency as the reason. I recall Trump relation with China isn't that good, especially due to past trade war. I don't expect the ban will be lifted anytime soon, but it could happen if government want to further boost their economic growth.

[Lucius]

China is considered to be a huge market for cryptocurrency but in 2013 the government of Xi Jinping decided to put a blanket ban on cryptocurrency...and so this market withered.

I think you are wrong about the year China banned trading and mining, as it was much later than 2013. I think trading is banned in 2019, and mining 2 years later. Until then, China was, as some say, a significant factor when it comes to cryptocurrencies.

The government then was emphasizing the many negative effects of cryptocurrency to the economy and the people (like scams and frauds using crypto) but there seems to be some people in China who are thinking that this stance must be revisit paving the way for the market to slowly take in crypto again. I am sure that the government would not easily budge on its stand and it can take a lot of convincing on its part to change its ban...but we are getting some light in the darkness.

The word of the former minister in China has almost no weight when it comes to the official position of the CP on anything. Communists have a hard time (or not at all) admitting that they were wrong, and I think that in this case it is no different.

Are you positive that eventually China will one day open its market?

Maybe it will happen, but only for that part of cryptocurrencies that they will be able to control. Everything that is decentralized simply has no place in a system that is obsessed with absolute control.

[Faisal2202]

It's good news for all of us. I mean, if they are considering it like their finance minister is considering it then a time will come when they will make an official announcement of lifting the ban but when will that happen? Usually, such statements, when made by such official figures come with some type of report, like what they previously thought and why and what they think about it now. Only considering the USA as the main point was not enough, but it was a nice try because I believe China takes competition with the USA seriously (just a self-observation).

He also talked about how countries from BRICS are adopting crypto like India and Russia on top, which is a good thing, but I don't know if they will consider India as competition, but Russia is not the right competition to China. Overall, if they are considering it then its's good news, and let's wait for it. I personally think it won't be happening in this bull cycle.

[Lucius]

It's good news for all of us. I mean, if they are considering it like their finance minister is considering it then a time will come when they will make an official announcement of lifting the ban but when will that happen?
~snip~

You obviously missed the key word "EX finance minister" - which is strange considering that it is literally the title of this topic. Personally, I'm always surprised when people experience news from China with such excitement, and actually the best news was when they decided to ban everything related to BTC.

China has always been quite a weight for BTC with all its semi-bans and constant threat to miners, and as someone who remembers that time well, I can only say that it is better for all of us that this ban remains as long as possible. People in China who want to buy BTC can always find a way to do it, and that's the whole point - that you don't have to ask the authorities if you can buy BTC and make transactions with it.

[MrSpasybo]

I don't know anything about this ex-minister, but it's weird he mention Trump supporting cryptocurrency as the reason. I recall Trump relation with China isn't that good, especially due to past trade war. I don't expect the ban will be lifted anytime soon, but it could happen if government want to further boost their economic growth.

He's suggesting that China shouldn't miss out on a major economic wave, backed by the US. He likely sees the immense potential of this market and wants the Chinese government to end the extreme bans that are hindering overall economic growth.

I agree with his viewpoint, but I doubt it will significantly influence the Chinese government's decisions. After all, he's retired and his voice doesn't carry much weight. It simply shows that there are still people in China who understand crypto, and we can hope for future changes in China.

[Zed0X]

Crypto is probably at the bottom of China's list of priorities right now or maybe they don't need it at all (they are busy buying Gold ). They are one of the countries with high online payments right? They can easily transition to crypto (or integrate it) if they want to.

[bitterguy28]

 I am sure that the government would not easily budge on its stand and it can take a lot of convincing on its part to change its ban...but we are getting some light in the darkness.

Are you positive that eventually China will one day open its market?

even russia is now open to bitcoin when it was strictly against bitcoin so i would not put it past china to change its stance even hong kong has good policies with crypto having an etf of bitcoin hong kong may independently govern themselves from china but china still has some power over hong kong and i am sure they can see how bitcoin is being used and how hong kong is benefitting from it

the fact that someone in their goverment is asking them to reevaluate means a lot already and a huge step forward china has been one of the biggest markets of crypto before it was banned so it would be interesting to see how much bitcoin can grow once china lifts its ban

[Lucius]

Crypto is probably at the bottom of China's list of priorities right now or maybe they don't need it at all (they are busy buying Gold ). They are one of the countries with high online payments right? They can easily transition to crypto (or integrate it) if they want to.

If the CP of China had any intentions to be involved in cryptocurrencies, then they would not have banned them - and as you say, gold is far more interesting to them, and in addition they have one of the most advanced CBDCs in the world and a political system that allows them to implement the same.

Any backtracking would be completely counterproductive and bring them no benefits other than the same problems they had in the past - and that is an uncontrolled outflow of money from the country, and mining farms, which according to them consume too much electricity and pollute the environment (if they use coal as raw material).

[Baofeng]

Personally, I do not think that the government of China are going to re-evaluate their cryptocurrency ban. And in my opinion, once they made that decision, there is no turning back.

That's how authoritative the government is, and they want to control everything, and so with crypto trading and mining, they are giving their population money that it's going hard for them to trace and they don't like capital flight.

As it is reported that during the prime years of Bitcoin in China, there are big amount of money that goes out to whatever places, specially in the US and that really weaken their local economy.

[robelneo]

Are you positive that eventually China will one day open its market?

I'm positive that they will eventually open up in the future, You cannot ignore something that the world is adopting; there is demand coming frrom your own people, China and Cryptocurrency will exist permanently in a modern world and China will always find it self defending its stand when there are parameters that they can employ so Cryptocurrency can be integrated in their system without violating their traditions and beliefs.

[Kemarit]

Are you positive that eventually China will one day open its market?

I'm positive that they will eventually open up in the future, You cannot ignore something that the world is adopting; there is demand coming frrom your own people, China and Cryptocurrency will exist permanently in a modern world and China will always find it self defending its stand when there are parameters that they can employ so Cryptocurrency can be integrated in their system without violating their traditions and beliefs.

For me though, I think that China will not open up in the future, they have seen what the bad effects of crypto to them, specially Bitcoin that they really work hard to ban it for good, first in the exchange and then Bitcoin mining.

It they see that it will help them out, then for sure, they will not go and ban it. And remember that they established their Digital Yuan, one of the first country to have a CBDC, so in essence, that is already crypto for them and for the Chinese people.

[NotATether]

It is more likely that this guy mysteriously disappears than for China to open up to crypto any time soon.

If the CP of China had any intentions to be involved in cryptocurrencies, then they would not have banned them - and as you say, gold is far more interesting to them, and in addition they have one of the most advanced CBDCs in the world and a political system that allows them to implement the same.

Any backtracking would be completely counterproductive and bring them no benefits other than the same problems they had in the past - and that is an uncontrolled outflow of money from the country, and mining farms, which according to them consume too much electricity and pollute the environment (if they use coal as raw material).

Gold + CDBC is a combination they like. Crypto, especially USDT, less so. Because most of the usage of USDT is inside China, and it's heavily used by fraudulent Chinese businesses (think like online scam rings and stuff like that). They don't like having to ask Tether, a US company, to block addresses for them. They would rather have such power themselves.

[Faisal2202]

You obviously missed the key word "EX finance minister" - which is strange considering that it is literally the title of this topic. Personally, I'm always surprised when people experience news from China with such excitement, and actually the best news was when they decided to ban everything related to BTC. make transactions with it.

I know the minister is Ex, and thanks for the correction, as I did not mention ex-minister in my last post. My motive was that even if an Ex finance minister is considering lifting the ban, then maybe there will be a word in the on-duty finance minister, or there might be some discussions ongoing because sometimes political figures, when they come to know about something, try to take the credit by sharing some inside news, but in a way that won't cause any harm to the political leaders on duty.

China has always been quite a weight for BTC with all its semi-bans and constant threat to miners, and as someone who remembers that time well, I can only say that it is better for all of us that this ban remains as long as possible. People in China who want to buy BTC can always find a way to do it, and that's the whole point-that you don't have to ask the authorities if you can buy BTC and make transactions with it.

I have read the stories like how they banned and unbanned crypto, I think I have to agree with you because for now if they lift the ban, the market will react and we will see a pump, but again, if they decide to ban it, then it will dump, but till then to be honest I will be out of market.

PS: I see you are the top Karma earners in Sep Congratulations for that.