Former China Central Bank Adviser: Rethink Cryptocurrency Ban

Former China Central Bank Adviser: Rethink Cryptocurrency Ban

Huang Yiping, a former advisor to the People’s Bank of China (PBoC), says the Chinese government needs to think about this. According to Yiping, banning cryptocurrencies is unsustainable in the long run. The economist believes that this could be beneficial in the short term, but could really cause problems for China in the long term.

Worried about the future

The former People’s Bank of China official caused a stir with his statement on the review of the ban on cryptocurrencies. Huang was concerned about the future of fintech in China. He made this known in a speech in December, which was only published three days ago.

The world of cryptocurrencies is evolving day by day and Huang believes that a permanent ban on cryptocurrencies could lead to many missed opportunities for the country. He particularly emphasizes the possibilities of blockchain and tokenization. He considers these technologies to be “very valuable”. “A ban on cryptocurrencies may be feasible in the short term, but whether it is sustainable in the long term deserves further consideration,” said Huang.

He is a person of many nuances, as Huang has a negative view of Bitcoin in addition to his positive view of blockchains and tokenization. Huang argued that Bitcoin is not really a currency because it has no intrinsic value. This statement probably hurts real Bitcoiners a lot. He also says that a significant portion of Bitcoin transactions are related to illegal circuits.

What is China’s stance on crypto?

The Chinese government is not happy with cryptocurrencies. In 2021, the Asian country banned everything related to cryptocurrency (except its own digital currency). China fears the unmanageability of digital currencies unless it does something about it.

The developer doesn’t really have a solution for this: “There isn’t a particularly good way to ensure the stability and operation of how cryptocurrencies should be regulated, especially for a developing country, but an effective approach may eventually be needed. to be found….”

Despite the ban, China remained the second largest bitcoin mining country. Therefore, there is probably still a large cryptocurrency community in the country. As many already know, decentralized projects can be banned, but never actually banned.

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Source: Btc Direct

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