Topic: Bank of China ex-advisor calls Beijing to reconsider crypto ban - page 2. (Read 222 times)
February 02, 2023, 02:38:21 PM
A summary of what I understood from all that China is doing regarding cryptocurrencies is that it does not want to involve itself with it, since it is against citizens having untraceable assets. Despite this, this does not prevent it from being one of the leading countries in mining Bitcoin, in addition to the fact that it certainly produces graphics cards for other types of mining. It seems that China does not pay much attention to the issue and will continue to ignore it.
February 02, 2023, 12:16:35 PM
Apart from a noted fact that being a former official means not having impact on political decision-making, I wouldn't say he's even strongly in favor of changing the policy. He's being careful enough in his texts, possibly because of not wanting to be blamed for criticizing the official policy, but maybe he also wrote it to make it seem like the topic is complex, regardless of his own position.
In any case, I don't think this will lead China to revisiting crypto regulations, and I also don't believe that China needs the extra revenue from friendlier policies. It's doing very well economically, and it is focused on controlling the citizens politically. Decentralized pseudonymous currencies may be too much freedom for the authoritarian state to offer, not worth a bit extra in taxes.
In any case, I don't think this will lead China to revisiting crypto regulations, and I also don't believe that China needs the extra revenue from friendlier policies. It's doing very well economically, and it is focused on controlling the citizens politically. Decentralized pseudonymous currencies may be too much freedom for the authoritarian state to offer, not worth a bit extra in taxes.
February 02, 2023, 11:27:58 AM
There were still lots of Chinese individuals recruiting crypto employees on LinkedIn. Despite the ban, yes Chinese are trading crypto.
This will really boost the prices of cryptocurrencies when they open the country for crypto as they did before. So far they were planning to make Hongkong a hub for blockchain developments as was stated in the news. It would be a waste to completely abandon the crypto industry when there are really good developers in the country that have started since, projects like NEO and Vechain are among the top 100.
February 02, 2023, 11:06:52 AM
With crypto emerging as the "legalize and tax it" version of legalizing cannabis of decades past. Could china's economy significantly benefit from approving and regulating crypto, rather than resorting to hardline policies more closely resembling outright bans?
In past years, we were bombarded with countless news articles claiming china would emerge as the next global superpower to dethrone the united states and takeover as the #1 nation in the world. Now that economic slowdown has encompassed the globe. Can china achieve its lofty ambitions, without harnessing emerging technologies like crypto to boost its economic potential and tax revenues? Could there be criticism made against china for handicapping themselves by outlawing things which might only give them an economic advantage over the long term?
In past years, we were bombarded with countless news articles claiming china would emerge as the next global superpower to dethrone the united states and takeover as the #1 nation in the world. Now that economic slowdown has encompassed the globe. Can china achieve its lofty ambitions, without harnessing emerging technologies like crypto to boost its economic potential and tax revenues? Could there be criticism made against china for handicapping themselves by outlawing things which might only give them an economic advantage over the long term?
I wouldn't be surprised if a beginner asks such questions, but haven't we already concluded dozens of times that China lost almost nothing by its decisions to ban crypto trading and mining? According to the latest data, the GDP in 2022 for China was slightly less than $15 trillion - and the question for you is how much would China profit if it had a monopoly on BTC mining and all CEXs were located in China? It seems to me that the amount is such that most members of the communist party would not even blink an eye if someone mentioned it.
The bottom line is that any policy shift towards cryptocurrencies does not change the outlook for the Chinese economy to any significant extent. I personally hope that they will stay true to their decisions, because Bitcoin only suffered from China, and we don't need a repeat of that story.
February 02, 2023, 10:45:05 AM
The prospect China has banned crypto to some people and hasn't banned it based on others' interpretations is a weird one. Did you notice the date was January 2022 too (not 2023)? I don't think it's still the case that a lot of crypto mining takes place in China.
I am surprised there aren't underground groups that teach people how to do these things that aren't well known to the authorities. Similar to the sentiments of the OP, where I'm from it's fairly easy to find people dealing in things that are illegal (depending on the severity) also cannabis has often been called a gateway drug as it gives the user a contact to get stronger stuff from.
You have to be a patient and purposeful person in order to fully continue to use the Internet, despite the bans and restrictions being introduced.
I am surprised there aren't underground groups that teach people how to do these things that aren't well known to the authorities. Similar to the sentiments of the OP, where I'm from it's fairly easy to find people dealing in things that are illegal (depending on the severity) also cannabis has often been called a gateway drug as it gives the user a contact to get stronger stuff from.
February 02, 2023, 08:42:35 AM
ex advisor does not have any input into current decisions so I would not worry about him suggesting this. He is a ex advisor for a reason. But I do not know what China would gain from banning btc when they banned btc last time it was still being used and all they did was encourage people to break the law. Chinese people are oppressed enough with the great firewall of china and most friends I have that live there already use vpns to bypass the oppression so they are not the most law listening citizens because they are being oppressed in most areas of their life. If they ban it again I can see it encouraging people to use it more because of the oppression .
My country also has a lot of technological restrictions on the use of the Internet.
In particular, the website Bitcointalk.org is blocked. It can only be used with VPN and other similar technologies. In addition, Internet services such as Instagram are blocked. From my observation, most people put up with the restrictions and eventually stop using VPNs in order to access prohibited sites.
The situation is aggravated by the fact that VPNs are also blocked and many of them cease to function. In fact, this is a struggle between armor and projectile.
You have to be a patient and purposeful person in order to fully continue to use the Internet, despite the bans and restrictions being introduced.
February 02, 2023, 08:28:02 AM
ex advisor does not have any input into current decisions so I would not worry about him suggesting this. He is a ex advisor for a reason. But I do not know what China would gain from banning btc when they banned btc last time it was still being used and all they did was encourage people to break the law. Chinese people are oppressed enough with the great firewall of china and most friends I have that live there already use vpns to bypass the oppression so they are not the most law listening citizens because they are being oppressed in most areas of their life. If they ban it again I can see it encouraging people to use it more because of the oppression .
February 02, 2023, 08:24:49 AM
Quote
The economist argued that the current crypto ban in China is beneficial in the short term, but big opportunities can be missed in the long run.
The idea of lifting the cryptocurrency ban has started floating in China as a former central bank official has called the country to review its stringent crypto restrictions.
Huang Yiping, a former member of the Monetary Policy Committee at the People’s Bank of China (PBoC), believes that the Chinese government should think again about whether the ban on cryptocurrency trading is sustainable in the long run.
Huang voiced his concerns about the future of fintech in China in a speech in December, according to a transcript published by the local financial website Sina Finance on Jan. 29.
The former official argued that a permanent ban on crypto could result in many missed opportunities for the formal financial system, including those related to blockchain and tokenization. Crypto-related technologies are “very valuable” to regulated financial systems, he stated, adding:
“Banning cryptocurrencies may be practical in the short term, but whether it is sustainable in the long run deserves an in-depth analysis,” Huang stated. He also highlighted the importance of developing a proper regulatory framework for crypto, though admitting that it won’t be an easy task. Huang said:
Despite calling for an in-depth analysis of the potential long-term benefits of crypto for China, Huang still emphasized that there are many risks associated with cryptocurrencies like Bitcoin. Huang argued that Bitcoin is more like a digital asset rather than a currency because it lacks intrinsic value. Echoing a common anti-crypto narrative, he also claimed that a significant share of Bitcoin transactions is related to illegal transactions.
Huang, now an economics professor at Peking University’s National School of Development, also admitted that China’s central bank digital currency has failed to reach wide adoption despite being launched many years ago. He added that allowing private institutions to issue stablecoins based on the digital yuan remains a “very sensitive” question, but the pros and cons are worth considering.
China has been long known for its “blockchain, not Bitcoin” stance, with Chinese President Xi Jinping calling for the country to accelerate the adoption of blockchain as a core for innovation in 2019. At the same time, the Chinese government has shown some hostility to crypto, eventually banning virtually all crypto transactions in 2021.
Despite the ban, China has continued to be the second largest Bitcoin miner in the world as of January 2022, hinting at a large crypto community still existing in the country. According to official data, mainland China customers accounted for 8% of the collapsed crypto exchange FTX despite the country’s ban on crypto trading.
Some local crypto enthusiasts even believe that China has never really banned individuals from possessing or trading crypto.
https://cointelegraph.com/news/bank-of-china-ex-advisor-calls-beijing-to-reconsider-crypto-ban
The idea of lifting the cryptocurrency ban has started floating in China as a former central bank official has called the country to review its stringent crypto restrictions.
Huang Yiping, a former member of the Monetary Policy Committee at the People’s Bank of China (PBoC), believes that the Chinese government should think again about whether the ban on cryptocurrency trading is sustainable in the long run.
Huang voiced his concerns about the future of fintech in China in a speech in December, according to a transcript published by the local financial website Sina Finance on Jan. 29.
The former official argued that a permanent ban on crypto could result in many missed opportunities for the formal financial system, including those related to blockchain and tokenization. Crypto-related technologies are “very valuable” to regulated financial systems, he stated, adding:
“Banning cryptocurrencies may be practical in the short term, but whether it is sustainable in the long run deserves an in-depth analysis,” Huang stated. He also highlighted the importance of developing a proper regulatory framework for crypto, though admitting that it won’t be an easy task. Huang said:
Quote
“There is no particularly good way to ensure stability and function as to how cryptocurrencies should be regulated, especially for a developing country, but ultimately an effective approach may still need to be found.”
Despite calling for an in-depth analysis of the potential long-term benefits of crypto for China, Huang still emphasized that there are many risks associated with cryptocurrencies like Bitcoin. Huang argued that Bitcoin is more like a digital asset rather than a currency because it lacks intrinsic value. Echoing a common anti-crypto narrative, he also claimed that a significant share of Bitcoin transactions is related to illegal transactions.
Huang, now an economics professor at Peking University’s National School of Development, also admitted that China’s central bank digital currency has failed to reach wide adoption despite being launched many years ago. He added that allowing private institutions to issue stablecoins based on the digital yuan remains a “very sensitive” question, but the pros and cons are worth considering.
China has been long known for its “blockchain, not Bitcoin” stance, with Chinese President Xi Jinping calling for the country to accelerate the adoption of blockchain as a core for innovation in 2019. At the same time, the Chinese government has shown some hostility to crypto, eventually banning virtually all crypto transactions in 2021.
Despite the ban, China has continued to be the second largest Bitcoin miner in the world as of January 2022, hinting at a large crypto community still existing in the country. According to official data, mainland China customers accounted for 8% of the collapsed crypto exchange FTX despite the country’s ban on crypto trading.
Some local crypto enthusiasts even believe that China has never really banned individuals from possessing or trading crypto.
https://cointelegraph.com/news/bank-of-china-ex-advisor-calls-beijing-to-reconsider-crypto-ban
....
Interesting points all around.
Quote
Despite the ban, China has continued to be the second largest Bitcoin miner in the world as of January 2022, hinting at a large crypto community still existing in the country. According to official data, mainland China customers accounted for 8% of the collapsed crypto exchange FTX despite the country’s ban on crypto trading.
Some local crypto enthusiasts even believe that China has never really banned individuals from possessing or trading crypto.
Some local crypto enthusiasts even believe that China has never really banned individuals from possessing or trading crypto.
With crypto emerging as the "legalize and tax it" version of legalizing cannabis of decades past. Could china's economy significantly benefit from approving and regulating crypto, rather than resorting to hardline policies more closely resembling outright bans?
In past years, we were bombarded with countless news articles claiming china would emerge as the next global superpower to dethrone the united states and takeover as the #1 nation in the world. Now that economic slowdown has encompassed the globe. Can china achieve its lofty ambitions, without harnessing emerging technologies like crypto to boost its economic potential and tax revenues? Could there be criticism made against china for handicapping themselves by outlawing things which might only give them an economic advantage over the long term?
As global debt climbs for nations of the world, everyone appears to be scrambling to harness new sources of capital, credit and liquidity. Crypto is emerging as one large global market and method for achieving these goals.
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