Chinese Economist Urges Government to Reconsider Crypto Ban
Huang Yiping, a former member of the monetary policy committee of the People's Bank of China (PBOC), urged authorities to consider the long-term effects of a cryptocurrency ban. This was reported by the South China Morning Post.
Blockchain technology is "very valuable" to financial systems, according to Huang, now a professor of economics at the National Development School of Peking University. The expert stressed the importance of developing a proper regulatory framework for cryptocurrencies.
However, he agreed that cryptocurrencies, particularly bitcoin, carry many risks.
Huang pointed out that the digital yuan has never been widely adopted. The possibility of allowing private institutions to issue stablecoins backed by the national digital currency, he said, remains a "very delicate" issue.
At the end of 2022, the NBK included CBDC in the calculation of the monetary base. At that time, there were 13.62 billion e-CNYs (~$2 billion) in circulation, equivalent to 0.13% of the total.