Lou Jiwei, China’s ex-finance chief, just uncorked a whole bag of caution at the 2024 Tsinghua Wudaokou Chief Economists Forum. And it wasn’t about no garden-variety inflation. Nah, Lou said China needs to flip open the crypto book, because the digital coin game is getting real dicey. According to Sina Finance, he said cryptos like BTC might just knock over financial stability like a stack of wobbly Jenga blocks. Too much volatility, too much risk, and way too many money launderers playing the game.
Lou didn’t mince words either. He claimed that the whole digital currency scene has been on regulators’ radar for all the wrong reasons. Terrorist financing, shady dealings, Anti-Money Laundering (AML) nightmares—it’s like crypto’s attracting trouble from all directions. So, Lou says China better strap in and start watching this space harder, or they’re in for a financial wipeout.
U.S. Crypto Pivot Spooking China?
But here’s the kicker—Lou dropped a bomb about the U.S. getting cozy with crypto. Apparently, the SEC just gave a green light to spot Bitcoin ETFs, and that’s a major deal. The ex-minister said this shift in U.S. policy is one for the books, and China’s policymakers can’t sit on their hands while the U.S. moves the pieces. Lou sounded the alarms, saying the shifts in U.S. finance could shake up the whole crypto sandbox globally, because when the U.S. moves, everyone else feels the aftershocks.
China might’ve slapped down the banhammer on Bitcoin mining back in 2021, but they’re still neck-deep in it. Over 55% of the Bitcoin hashpower still flows through Chinese mining pools, and Lou doesn’t want China to lose that edge. That’s why he’s saying they gotta stay woke on what’s happening internationally before crypto flips the table.
Mining Turf War Heating Up
Crypto mining, though? The game is changing fast. Ki Young Ju, CEO of CryptoQuant, just said in a recent X post that the U.S. is biting into China’s mining dominance. American mining pools now run 40% of Bitcoin’s operations, especially catering to big players. Meanwhile, Chinese mining pools are now more of a home base for small-timers. This mining drift might be just one more reason Lou’s getting jittery. He’s seeing the writing on the wall and is trying to make sure China doesn’t miss the next crypto airdrop revolution.
Leave a Reply
You must be logged in to post a comment.