While China is accelerating efforts to test and adopt its CBDC, it still maintains a blanket ban on all crypto-related activities. Huang Yiping, a former adviser to the People’s Bank of China (PBOC), has raised concerns that China is losing next-generation fintech opportunities that other parts of the world are already experimenting with. Yiping’s warning to Chinese authorities comes against the backdrop of its neighbor India, which is taking a comparatively friendlier stance on crypto.
China should reconsider its negative and rigid stance on crypto activities, the economist said allegedly alarmed.
According to Yiping, there are opportunities to explore the “very valuable” Blockchain Technology are enormous.
Concerned about the misuse of cryptocurrencies for illegal purposes, Beijing imposed a blanket ban about activities in the industry. Crypto transactions are largely untraceable, and the level of use of cryptocurrencies for money laundering, tax evasion, and terrorist financing has been a concern for governments around the world for a number of years.
Ease the constant need for energy crypto mining also hindered the smooth supply of electricity to many parts of the nation.
China last year announced that nationals involved in fundraising activities via cryptocurrencies be subject to prison terms.
Unlike China, other countries like India, US, UK, El Salvador and Russia are keeping a gradual but acceptable pace towards the virtual digital asset space.
However, the country is not closed to the idea of experimenting with blockchain.
of China e-CNY-CBDC is already being tested in selected cities.
In August last year, China’s Taiyi group acquired Huobi’s “Huoxun” communication tool to add more technical details to its Metaverse exploration journey.
This January, China also welcomed an official, state-sponsored NFT Marketplace that would allow Chinese NFT traders to dabble in the space, but under Chinese government oversight.
Law enforcement agencies in China have been raids and busts illegal crypto operations taking place despite government ban.
