China's Former Minister of Finance Calls Crypto a 'Crucial Aspect' of Digital Economy

The former minister called on Beijing to study the industry in light of Republican candidate Donald Trump's comments on crypto.

China’s Former Finance Minister Highlights Crypto’s Importance in Digital Economy

China’s ex-minister of finance has called on Beijing to study the crypto industry more closely, especially in light of Republican candidate Donald Trump's comments on the matter.

Zhu Guangyao, China's former minister of finance, stated at a forum hosted by Tsinghua University that the government should pay closer attention to crypto, particularly given the statements being made on the U.S. campaign trail.

"Crypto has negative impacts, and we must fully recognize its risks and the harm it poses to capital markets," Sina News quoted him as saying. "However, we must also study the latest international changes and policy adjustments, as it is a crucial aspect of digital economy development."

According to Sina, Zhu specifically pointed to remarks made by Republican candidate Donald Trump as a reason for further action by Beijing.

"The United States must fully embrace the crypto industry, or 'China will do it,'" Trump stated at the Bitcoin Conference in Nashville in July.

"Crypto is the steel industry of 100 years ago. You're just in your infancy. One day, it probably will overtake gold. There's never been anything like it," he added at the time.

Zhu also highlighted the Securities and Exchange Commission's (SEC) approval of bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs), despite initially opposing them.

While mainland China maintains a cautious stance on crypto, Hong Kong – which operates under a semi-autonomous system of government and market regulations – has welcomed the industry, listing bitcoin and ether ETFs, and some members of its mini-legislature actively courting crypto firms to set up shop in the city.

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