China is Missing Fintech Opportunities Banning Crypto, Warns Economist
China, while accelerating its efforts to test and launch its CBDC, is still maintaining a blanket ban on all crypto-related activities. Huang Yiping, the former advisor to the People’s Bank of China (PBOC), has voiced concerns that China is losing next-gen fintech opportunities that other parts of the world are already experimenting with. Yiping’s warning to the Chinese authorities comes in the backdrop of its neighbour India, taking a comparatively friendlier approach towards crypto.
China should reconsider its adverse and rigid stance on crypto activities, the economist reportedly alerted.
In Yiping’s opinion, opportunities in exploring the ‘very valuable’ blockchain technology are enormous.
Concerned about the misuse of cryptocurrencies for illicit purposes, Beijing imposed a blanket ban on activities in the sector. Crypto transactions are largely untraceable, and the scope of cryptocurrencies being used for money laundering, tax evasion, and terror funding have stirred concerns for governments around the world for some years now.
The constant need for energy to facilitate crypto mining was also hindering the smooth supply of power to many parts of the nation.
Last year, China announced that nationals who engage in fundraising activities via cryptocurrencies will be subjected to jail time.
Unlike China, other countries like India, the US, the UK, El Salvador, and Russia are keeping a gradual but accepting pace towards the virtual digital assets space.
The country is, however, not closed to the idea of experimenting with blockchain.
China’s e-CNY CBDC is already under test runs in select cities.
In August last year, China’s Taiyi Group acquired Huobi’s ‘Huoxun’ communication tool in order to add more technical details in its metaverse exploration journey.
This January, China also welcomed an official, state-backed NFT marketplace that would let Chinese NFT traders to dabble in the space, but under the oversight of China’s government.
The law enforcement authorities in China have been raiding and busting illegal crypto operations that are going on despite the government’s ban.