Recently, a former member of the Monetary Policy Committee at the People’s Bank of China (PBoC), Huang Yiping called for Beijing to change its ban on cryptocurrencies in the country.
- The economist thinks that the permanent ban on cryptocurrencies is only beneficial in the short term. Still, according to a long-term plan, it greatly affects China seizing big opportunities in the future. At the same time, this action will make China’s FinTech industry backward in the future.
- Although China is focusing on bringing blockchain technology into everyday life, the country is still famous for its “blockchain, not Bitcoin” stance. At the same time, the Chinese government has shown some hostility towards cryptocurrencies, eventually banning virtually all crypto transactions by 2021.
See Related: China Aims To Make Zhejiang A Metaverse Hot Zone By 2025
- If Mr Huang Yiping’s proposal is approved, this will be a good sign for investors in China. Despite the ban, China remains the world’s second-largest Bitcoin mining country as of January 2022, showing that a large crypto community still exists.
- Some Chinese investors think that the government’s ban only prohibits the trading of cryptocurrencies, but does not actually ban ownership of this virtual asset, so mining and holding here is completely legal.
See Related: Russia Is Considering Digital Ruble Settlements With China
