Should Beijing look at its crypto ban? A former bank member believes so

Last Updated on 1 hour by John Piper

Huang Yiping is a former member of PBoC’s Monetary Policy Committee. He has advocated actively for lifting or easing the ban on cryptocurrencies from China.

According to local media outlets, Huang said that he believed that the ban on Bitcoin ($BTC), and any activity related to cryptocurrency, will lead to missed opportunities for innovation in the financial system. Huang spoke out against the ban, saying:

While bans on cryptocurrency may seem practical for the short-term, it’s not sustainable over the long-term. This is why we need to do a thorough analysis. Although there is no way to guarantee stability or function of cryptocurrencies, particularly for developing countries, an effective approach might still be possible.

He spoke out about cryptocurrencies as well as the possibility of introducing blockchain-based solutions in the country. While he acknowledged the risks of cryptocurrency, he suggested a regulatory framework that would allow cryptocurrency to be used safely and not ban it without a long-term strategy. Although he acknowledged the difficulties in regulating cryptocurrency in China, he believes that there are still many benefits to cryptocurrency.

China’s position on Bitcoin

China currently advocates blockchain but not Bitcoin. The technology has been endorsed by President Xi Jinping.

Despite all this, the Chinese government is aggressively anti-cryptocurrency. This led to a blanket ban of crypto transactions in 2021.

Despite not being within the legal operations, China is still the second largest Bitcoin miner in the world, according to data from the Cambridge Bitcoin Electricity Consumption Indice (CBECI). This shows that the country has crypto-friendly citizens who are willing to conduct cryptocurrency transactions and operate cryptocurrency activities despite the regulations. Although the mining rate is not as high as before the ban, the region’s hashrate shows that there is a strong crypto community.

The post Beijing should reconsider its ban on crypto currency Coin Insider: A former bank employee believes so.

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