Speaking at the Tsinghua Wudaokou 2024 Chief Economists Forum in Beijing, former Chinese Finance Minister Lu Jiwei urged China to carefully assess the progress and risks associated with cryptocurrencies.
Lu has reportedly highlighted the potential threats that digital currencies pose to financial stability, such as volatility and their use for money laundering. He also noted the changing stance of the United States towards cryptocurrencies, especially after the U.S. Securities and Exchange Commission approved Bitcoin exchange-traded funds (ETFs).
Lou highlighted the risks that cryptocurrencies could bring to global financial stability, including concerns related to anti-money laundering (AML) and terrorist financing. He called for a thorough examination of these risks to protect financial systems from potential disruption.
Lu also pointed to the significant shift in US policy on cryptocurrencies, urging Chinese policymakers to study these global changes. He stressed that it is important to understand both the risks and innovations in the digital economy as cryptocurrencies are increasingly accepted in global markets.
Despite China’s 2021 ban on mining and trading Bitcoin, the country still controls over 55% of the BTC mining network, although this dominance is gradually shifting to US mining firms.
The UK government has unveiled a fresh set of proposed regulations for digital assets, aiming to balance technological advancement with stronger protections against financial misconduct.
Bitcoin could soon play an official role in Arizona’s public finance system. This week, state lawmakers approved the Arizona Strategic Bitcoin Reserve Act, a bill that would allow up to 10% of treasury and retirement fund assets to be invested in digital assets like Bitcoin.
The U.S. Securities and Exchange Commission’s (SEC) crypto task force, led by Commissioner Hester Peirce, is continuing its behind-the-scenes engagement with digital asset firms as the agency weighs new approaches to crypto regulation.
In a major policy shift, the Federal Reserve announced on Thursday that it will no longer require state-chartered member banks to notify the central bank before engaging in crypto-asset activities.