Huang Yiping, a former official of the People’s Bank of China (PBoC), has called on the Chinese government to review the cryptocurrency ban. He believes the strict restrictions are unsustainable in the long run. This idea has been gaining traction in China since Huang Yiping’s appeal.
A ban on crypto leads to missed opportunities
Huang expressed concerns about the future of fintech in China in a speech in December, according to a transcript published by local finance website Sina Finance.
The former official said a permanent ban on crypto would lead to huge missed opportunities for the formal financial system, especially those related to blockchain and tokenization. He emphasized that crypto-related technologies can be “very valuable” to regulated financial systems, adding:
“Banning cryptocurrencies may be practical in the short term, but whether it is sustainable in the long term is highly questionable,” said Huang. He also stressed the importance of developing a proper regulatory framework for crypto, although he admitted that it will not be an easy task.
There are also many dangers to crypto
While Huang called for a thorough long-term review of a crypto ban, he stressed that there are many risks associated with using cryptocurrencies such as Bitcoin. He claimed that Bitcoin is seen more as a digital asset than a currency because it has no intrinsic value. He also stated that a significant portion of Bitcoin transactions are associated with illegal activity.
China has long held a “blockchain, no crypto” stance, which Chinese President Xi Jinping further strengthened in 2019 by calling for accelerated adoption of blockchain as the core of innovation. Despite the embrace of blockchain, the Chinese government has decided to ban almost all crypto transactions. Despite the ban, China is still the second largest Bitcoin miner in the world.