The former Chinese finance minister is concerned about crypto research after the change in the American Bitcoin ETF
Speaking at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, former Chinese Finance Minister Lu Jiwei urged China to closely monitor developments in cryptocurrency.
According to Sina Finance's report of the speech, the former minister discussed crypto's potential risk to financial stability, including volatility and their role in money laundering.
In particular, following the US Securities and Exchange Commission's approval of spot bitcoin (BTC) exchange-traded funds (ETFs), they indicated a shift in the United States' stance toward cryptocurrencies.
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Threats to global financial stability
Lowe warned of the potential negative impact cryptocurrencies could have on global markets, particularly as inflation could create financial instability.
He noted that digital currencies have long been seen as a threat to financial security, particularly in areas such as counter-terrorism financing and anti-money laundering (AML).
The former finance minister said these risks should be carefully considered and analyzed to protect financial systems from potential shocks.
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U.S. crypto policy turns upside down
Lu pointed to a major policy shift in the US.
The former finance minister urged Chinese policymakers to pay attention to these global changes in the perception of crypto assets.
They emphasized the importance of studying the risks and innovations of the digital economy, especially if the US accepts cryptocurrencies in the financial markets.
“[…] We need to study the latest global changes and policy adjustments as they are crucial for the growth of the digital economy.
Related: China Still Controls 55% of Bitcoin Hashrate Despite Crypto Ban
China dominates crypto hashrate.
In the year China controls 55% of the BTC mining network through mining pools, despite the country's blanket ban on BTC mining and trading that goes into effect in 2021.
In a September 23 X post, CryptoQuant founder and CEO Ki Young Joo explained that BTC's mining dominance is slowly shifting to US mining companies.
Ju noted that US pools manage about 40% of all BTC mining operations, mainly supplying institutional miners in the US, while “Chinese pools support relatively small miners in Asia.”
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