On September 28, the 2024 Tsinghua PBC Chief Economist Forum was held in Beijing. It featured a speech from Zhu Guangyao, the former vice minister of finance. In his address, Zhu emphasized the importance of understanding the latest developments in cryptocurrencies and international policy changes. He stressed that this knowledge is vital for the growth of China’s digital economy.
Zhu agreed that cryptocurrencies can have adverse impacts. He said it is necessary to understand the threats they bring to the capital market. However, he also noted that it is equally necessary for China to learn about global crypto changes. This understanding will assist the country in developing strategies for survival in the dynamic digital economy.
Zhu Discusses the Future of Digital Currency and Its Global Implications
During his speech, Zhu outlined the historical background of cryptocurrencies. He pointed out that for more than ten years, the United States has regarded cryptocurrencies as a major threat to its activities in the international fight against money laundering and financing of terrorism. He said that the volatile nature of cryptocurrencies affects the global financial market and creates instability.
This year, Zhu indicated a significant new development in the United States cryptocurrency policy. He said that Donald Trump has also adopted cryptocurrency into his campaign agenda. He stated that the US needs to adopt this technology to remain relevant in the global economy. Trump has said that if the US does not start embracing cryptocurrencies, China will be the one to do so. This statement emphasizes that cryptocurrencies are essential to the future financial world.
In addition, Zhu highlighted that the SEC has endorsed the listing of 11 Bitcoin ETFs on stock and futures markets. This approval is a significant step towards accepting cryptocurrencies into conventional financial systems, and it shows that the U.S. is moving in the right direction.
Zhu also pointed out that several countries in the BRICS, such as Russia, South Africa, Brazil, and India, have started to make some serious moves in the area of cryptocurrency. This shows that the BRICS countries are also interested in the possibilities of digital currency. This aligns with the general theme of change and adaptation that has characterized the international financial system. Overall, Zhu provided valuable ideas that shed light on the potential and drawbacks of decentralized finance and cryptocurrencies.
