- The former minister warned about the dangers of cryptocurrency, including its volatility.
- Lou Jiwei stressed that these risks should be thoroughly studied.
Former Chinese finance minister Lou Jiwei called on China to carefully study cryptocurrency progress during his comments at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing. The speech was reported by Sina Finance and it said that the former minister warned about the dangers of cryptocurrency, including its volatility and its involvement in money laundering.
He went on to say that the US government’s attitude toward cryptocurrencies is changing. Especially after the SEC approved spot Bitcoin ETFs. Due to the significant degree to which price swings might cause financial instability. Lou cautioned about the potential negative effects of cryptocurrencies on global markets.
Call for Evaluating Opportunities and Threats
Particularly mentioning sectors like anti-terrorism funding and Anti-Money Laundering (AML), he emphasized that digital currencies have long been seen as a danger to financial stability.
In order to protect financial systems from possible shocks, the former finance minister stressed that these risks should be thoroughly studied and thought about. Lou brought attention to the significant change in US policy.
The country’s leaders should take note of these changes in global opinion toward cryptocurrency, according to the former finance minister. Given the widespread use of cryptocurrencies in the US financial market. He emphasized the need to evaluate the opportunities and threats posed by the digital economy.
In spite of China’s all-out prohibition on Bitcoin mining and trade that took effect in 2021. Chinese mining pools still manage more than 55 percent of the Bitcoin network. According to Ju, roughly 40% of all Bitcoin mining activities are overseen by US pools, which mostly serve American institutional miners, whilst Chinese pools aid smaller Asian miners.
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