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

China’s former finance minister, Zhu Guangyao, urged the government to pay closer attention to the cryptocurrency markets during a speech at a summit hosted by Tsinghua University. He emphasized the importance of recognizing both the risks and negative impacts that crypto can have on capital markets.

In his address, Zhu called for a thorough examination of cryptocurrency, particularly in light of recent comments from the U.S. campaign trail. He highlighted the need to acknowledge the potential harm crypto poses, stating, “We must fully recognize its risks and the harm it poses to capital markets.” However, he also noted the importance of staying informed about international developments and policy changes, considering this as vital for the growth of the digital economy.

Zhu specifically referenced remarks made by Republican candidate Donald Trump, who, at the Bitcoin Conference in Nashville, warned that the U.S. needs to fully embrace the crypto industry to avoid falling behind China. Trump characterized crypto as the “steel industry of 100 years ago,” suggesting it has immense potential to surpass gold in the future.

Additionally, Zhu pointed out that the U.S. Securities and Exchange Commission (SEC) had recently approved bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs), despite initial resistance. While mainland China remains cautious about cryptocurrency, Hong Kong has adopted a more welcoming approach, listing bitcoin and ether ETFs and encouraging industry players to establish a presence in the region.