China On Alert! Cryptocurrency Could Threaten The Global Economy
Former Chinese Finance Minister Lou Jiwei recently warned of the global financial risks associated with cryptos, particularly the adoption of Bitcoin ETFs in the United States. This statement comes as over-the-counter (OTC) cryptocurrency brokers in China see a significant increase in investment flows.
The risks of crypto in China and the impact of Bitcoin ETFs in the United States
Lou Jiwei warned of the negative implications that cryptos could have on global markets, due to price fluctuations that could create financial instability. He emphasized that digital currencies are seen as a threat to financial security, particularly in terms of terrorism financing and anti-money laundering efforts.
Furthermore, the recently approved Bitcoin ETFs in the United States also raise questions about their potential impact on the global financial system. During periods of volatility, these products could exacerbate fluctuations in bitcoin prices and create gaps between the ETF price and that of BTC. Experts have already observed volatility events that perfectly illustrate these concerns.
Reactions and concerns in China
In response to these crypto developments, the China Securities Regulatory Commission (CSRC) held a meeting to enhance inter-agency coordination and promote specific monetary policy tools, such as special loans for stock buybacks. This initiative aims to stabilize Chinese financial markets amid growing global uncertainties.
China is taking these measures in a rather delicate context, where black market crypto trading has exploded, reaching $23.7 billion in 2024. This rapid growth of the underground cryptocurrency market underscores the urgency for stricter regulation to protect the country’s financial stability.
The rise of Bitcoin ETFs in the United States and growing concerns in China highlight the challenges and opportunities of cryptos in the current global economy. Regulators must navigate carefully to balance innovation and financial stability.
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Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
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