Chinese economist urgently calls on the government to rethink crypto ban-warns of missed technical possibilities-regulation

An economic professor and former advisor to the People’s Bank of China asked the Chinese government to rethink their ban on cryptocurrencies. He warned that the ban on crypto activities could lead to missed opportunities that are "very valuable" for regulated financial systems.

Chinese economist warns of missed opportunities through crypto ban

A former Central Bank consultant, People’s Bank of China (PBOC), asked the Chinese government to re -evaluate its ban on cryptocurrencies, reported South China Morning Post on Monday.

Huang Yiping was a member of the Monetary Policy Committee of the People’s Bank of China between 2015 and 2018. He is currently a professor of finance and economy at the National School of Development at Beijing University.

The former central bank advisor admitted that a ban on cryptocurrencies for China could be practical for the time being, but emphasized that the government should check whether such a policy will be in the long term. He warned that a permanent ban on crypto -related products could lead to missed opportunities for technologies such as blockchain that are "very valuable" for regulated financial systems.

In September 2021, the Chinese government declared all crypto activities for illegal and claimed that Krypto had disrupted the country's economic and financial regulations and at the same time created a breeding ground for criminal activities.

Despite the continued procedure of the Chinese government, there is still a considerable number of cryptocurrency investors in China. According to the blockchain analysis company Chainalysis, China includes top 10 countries with the highest crypto acceptance. In addition, FTX's bankruptcy application shows in November last year that mainland users Crypto exchange; FTX had over 5 million active users before it imploded.

In addition, cryptocurrency-mining activities in China. According to data from the Cambridge Center for Alternative Finance (CCAF), data traffic from China made up about 20 % of the total hash rate from Bitcoin from September 2021 to January 2022. The center explained: "This strongly indicates that the country has formed significant underground mining activity ... With the insertion of the ban and the disturbed time, it seems that the underground miners have become more confident and with the protection that local proxy services seem to be satisfied."

Huang noted that the PBOC attempts to advance the introduction of its digital central bank currency (CBDC). Although the digital Yuan or E-Cny is still in the test phase, the central bank began to count the digital currency as part of its money supply in December last year. But the former PBOC General Director for Research Xie Ping recently said the use of Chinas CBDC was "Low" and "highly inactive".

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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