Topic: Bank of China ex-advisor calls Beijing to reconsider crypto ban (Read 222 times)

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.

Everyone says that China would earn from taxation, but no one says how much? I will not repeat myself because I already wrote something about it in the previous post, but is it about $500 million or $5 billion and what significance would that have in the economy, which according to all forecasts will achieve significant growth this year, which will be measured in trillions.

It seems that after all these years, people do not understand that Bitcoin is a much bigger problem for China because of the idea it represents, than any financial benefit that could come from it. A country that censors the internet to an unprecedented extent will never allow its citizens to be financially independent in any way.

Everyone says that China would earn from taxation, but no one says how much? I will not repeat myself because I already wrote something about it in the previous post, but is it about $500 million or $5 billion and what significance would that have in the economy, which according to all forecasts will achieve significant growth this year, which will be measured in trillions.

~snip~
Anyway, I'm sure China will lift the ban sooner rather than later. Bitcoin can't be stopped. 

China banned bitcoin but their citizens still use it as a property. Chinese government ban bitcoin mining and brought bitcoin mining hash rates to zero but China is now the second country with the highest bitcoin hash rates. China banned bitcoin several times but bitcoin got to all-time-high over and over after several ban. Without China, bitcoin can survive.

It would be better for Chinese government to rethink, they like centralized things like their own money, their own CBDC, their own apps for social media. If possible that China can live without the people outside of China, their government would have done that. Because bitcoin is decentralized, they do not support it, it would be good if they reconsider their wrong past decision.

He is correct, the benefits of cryptocurrencies especially Bitcoin is greater than the disadvantages. China is not a democratic nation that is why we shouldn't expect much from this comments because the decision on the communist party definitely supercede the voice of the people. China might consider unbanning cryptocurrencies maybe if they want to help Russia and Iran to invade sanctions.

“Banning cryptocurrencies may be practical in the short term, but whether it is sustainable in the long run deserves an in-depth analysis,”

If that ex-advisor goes missing after some days, don't be surprised! These are quite common things in China.

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.

Reversing the ban on crypto could be very beneficial for China even due to the fact alone that they're going to be able to harvest more money in taxes. On the monetary control/privacy side, it's not like China can't do their own chainalysis on their people. Pretty sure they can if they wanted to.

Interesting points all around.


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.

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?

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.

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 .

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