March 22, 2023

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The concept of eliminating the crypto prohibition has begun to rise across the Chinese jurisdiction as a former official from the country’s central bank has recently spoken on it. The official stated that China should review the strict restrictions imposed by it on crypto assets.

Huang Yiping, who has formerly been playing the role of the Monetary Policy Committee’s participant at the People’s Bank of China (PBoC), spoke on the country’s anti-crypto stance.

Former Official from Chinese Central Bank Says Country Should Review Its Ban of Crypto

He considers that the authorities in China should reconsider if placing a prohibition on the trading of crypto assets is maintainable in the long term. The former official voiced apprehensions regarding the fintech sector’s future in the jurisdiction of China.

While giving a speech in December, Huang discussed this matter, as per a transcript published by Sina Finance (a native financial website).

The former official is of the view that a perpetual prohibition on the respective sector could pave the way for several missed opportunities related to the official financial system of the country, taking into account those dealing with tokenization and blockchain.

The technologies related to crypto are very beneficial for the regulated systems of finance, he added.

The official mentioned that prohibiting the crypto assets may be applicable just for a temporary period, however, it is not sustainable for the long term.

He disclosed that an in-depth analysis should be carried out while dealing with such a prohibition forever. He also pointed toward the significance of constructing an adequate regulatory agenda to cover the crypto assets.

However, he additionally acknowledged that it will not be a convenient thing. The former official specified that there is no specific good manner to guarantee the function as well as the stability as to should the regulation of the crypto assets should be done.

In his words, this is witnessed particularly in the case of a developing nation. Nevertheless, eventually – he added – an efficient methodology may still require to be discovered.

Notwithstanding the suggestion of carrying out an in-depth analysis covering the likely long-term advantages of crypto assets in the Chinese financial system, he also said something else.

Huang stressed that a lot of risks are related to crypto assets such as Bitcoin. In Huang’s words, the primary crypto token is more like an asset in digital form instead of playing the role of a currency.

Huang thinks that Bitcoin lacks an intrinsic value. Reiterating a normally voiced anti-crypto stance, he additionally specified that Bitcoin transfers’ crucial share is dealing with illegitimate transactions. At present, Huang is playing the role of an economics professor serving at the National School of Development of Peking University.

Huang additionally acknowledged that the central bank digital currency of the country has remained unsuccessful to be adopted on a wide level although its launch was carried out several years back.

The economics professor specified that permitting private organizations to release digital yuan-pegged stablecoins is still a considerably sensitive question.

Chinese President Calls Blockchain Adoption Crucial in Innovation

However, Huang added that such a project’s harms and benefits should be taken into consideration. For a considerable time, the country has been presenting itself as a blockchain proponent but anti-crypto jurisdiction.

Back in 2019, President Xi Jinping called for the acceleration of blockchain adoption and categorized it as a crucial part of innovation.

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