In an intriguing development, Zhu Guangyao, China’s former Vice Minister of Finance, has called on the Xi Jinping administration to delve deeper into the study of cryptocurrencies, emphasizing the significance of the industry in the digital economy and its growing mentions in global discussions.
What Happened: Guangyao made these remarks at the 2024 Tsinghua Wudaokou Chief Economist Forum on Saturday, as reported by Sina News. He acknowledged the potential risks associated with cryptocurrencies but stressed the importance of staying informed about international changes and policy adjustments.
Interestingly, Gyangyao was part of the administration when China, once a cryptocurrency mining and trading hub, enforced a blanket ban on every activity related to the asset class in 2017.
Why It Matters: Zhu’s call for a closer study of cryptocurrency came at a time when China, despite the ban, controlled more than half of the global Bitcoin BTC/USD hash rate. This was in contrast to U.S.-based mining companies, which managed approximately 40% of the global computing power needed to solve complex mathematical puzzles and create new Bitcoins.
In fact, reports suggested a growing trend of Chinese investors finding alternative ways to engage in the cryptocurrency market, raising questions about China’s real intentions.
The ex-minister’s comments could also be interpreted in light of changing dynamics in other countries, particularly the U.S.
Former President Donald Trump, who is running for the White House, has tried to court the cryptocurrency demography by vowing to support various industries associated with digital assets. Like his broader political movement of “America First,” Trump wants the U.S. to take the lead in cryptocurrency activities so that it does not fall behind China.
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