The idea of lifting the cryptocurrency ban has started floating in China as a former central bank official has called the country to review its stringent crypto restrictions.
Former member of the People's Bank of China (PBoC) Monetary Policy Committee Huang Yiping thinks the Chinese government should reconsider whether the ban on cryptocurrency trading is long-term viable.
In a lecture in December, Huang expressed his worries about the direction of fintech in China, according to a transcript that was made public by the regional financial website Sina Finance on January 29.
A permanent ban on cryptocurrencies, according to the former official, might prevent the formal financial sector from taking advantage of numerous prospects, including those involving blockchain and tokenization. He said that innovations connected to cryptocurrencies are "very valuable" to regulated financial systems, adding:
“Banning cryptocurrencies may be practical in the short term, but whether it is sustainable in the long run deserves an in-depth analysis.”
He also emphasized the significance of creating an appropriate regulatory framework for cryptocurrencies, while also acknowledging that it won't be simple.
“There is no particularly good way to ensure stability and function as to how cryptocurrencies should be regulated, especially for a developing country, but ultimately an effective approach may still need to be found.”