The event is the 2024 Tsinghua PBC Chief Economist Forum, held in Beijing, on September 28th and drew massive focus on the changing role of cryptocurrency within the financial system. The event featured a speech by Zhu Guangyao, previously the vice minister of china’s Ministry of Finance, in which he encouraged the participants, as well as policymakers and financial specialists, to further study the phenomena of the development of digital currencies and their implications for the world economy.
The underlying cryptocurrency, according to Zhu, is a threat to capital markets and should be minimized. He said,
“It does have negative effects, and we must fully recognize its risks and harm to the capital market, but we must study the latest international changes and policy adjustments because it is a crucial aspect to the development of the digital economy.”
At the same time, Zhu also noticed these challenges relating to learning the latest international trends and policy changes concerning digital currencies. He said it is crucial to comprehend these shifts if they are to encourage development across the digital economy.
During his speech, Zhu looked back at the past decade of cryptocurrency regulation, mainly concentrating on the United States’ position on the matter. Originally, the United States has been suspicious to the cryptocurrency mainly due to its possible linkage to money laundering and terrorist financing. Zhu also said that flucuations of cryptocurrencies was a destabilizing force on the international financial system and envisioning threats for regulators of the world.
U.S. Embraces Crypto
However, 2024 has seen a change in approach to digital assets’ policy by the United States of America. Zhu also noted that digital money became a significant topic in the political campaign of the outgoing president of the United States, supporting him, Donald Trump, who called for the admiring of cryptocurrencies.
As Zhu pointed out, the US President allegedly said that if the country did not embrace cryptocurrencies, China will replace the US. Also, there is more favourable regulation, as 11 Bitcoin ETFs were listed by the U.S. Securities and Exchange Commission (SEC) in both stock and futures markets.
Cryptocurrency policy shift is not exclusive to the United States As the world’s emerging market nations and the BRICS nations like Russia, South Africa, Brazil, and India, embrace active steps towards regulation and policy on cryptocurrency. The nature of these nations is that they are starting to appreciate the potentials of digital currencies, and are creating structures to address the associated risks and potentialities.
The speech at the forum by Zhu Guangyao tried to hint nations to embrace cryptocurrency’s positive side but also consider the downside to it in terms of boosting economies. With the advancement of the digital economy across the world, almost every country is reevaluating its plans and regulations when it comes to stabilizing the financial market and incorporating digital assets.
