Öffnet sich China bald wieder für Bitcoin & Co?

In the past few days, there have again been rumors in the People's Republic of China of a possible reorientation with regard to digital assets such as Bitcoin.

A decisive impetus came from former Chinese deputy finance minister Zhu Guangyao, who emphasized in a speech at the Tsinghua Wudaokou Chief Economist Forum in Beijing that it was time to take a closer look at digital assets. Recent developments in the US in particular, including the introduction of exchange-traded funds (ETFs) in the crypto sector, have drawn China's attention to this topic, Guangyao said.

The former minister emphasized that digital assets, such as Bitcoin, are now a global reality that cannot be ignored. He also emphasized the need to understand these innovations in order not to lose touch with the global financial world.

We need to seriously research the development of cryptocurrencies. While they indeed have a negative impact and we need to be aware of the risks and dangers to the capital market, we also need to study the latest international developments and policy adjustments as they are crucial to the development of the digital economy.
_{Zhu Guangyao, former Deputy Minister of Finance}

The US, which has taken a pioneering role in this area with the introduction of ETFs, should serve as an example of the potential opportunities, but also challenges, that the crypto market brings.

China has taken a very restrictive stance towards cryptocurrencies in recent years. As early as 2013, financial institutions were prevented from facilitating Bitcoin transactions. This was followed by a ban on initial coin offerings (ICOs) in 2017, and in 2021 the Chinese central bank finally banned all crypto transactions, including mining.

Although the former minister's call could be seen as a positive signal for supporters of digital assets in China, experts emphasize that a fundamental change in China's attitude towards cryptocurrencies is rather unlikely. Blocktrainer.de reported a few weeks ago that Beijing is likely to maintain its restrictive stance towards Bitcoin and co. Roger Huan, an expert on the legal status of Bitcoin in China, wrote an article on the subject for Forbes Digital Assets and explained that a rapid lifting of the existing ban is not in sight and that the Chinese government will maintain its concerns about financial stability and the potential risks to the national currency.

Nevertheless, Huang also believes that a rethink may be taking place and that the Chinese government may be keen to better understand Bitcoin & Co.

There have been some notable headlines regarding China, such as that of the Hong Kong professor who thought the ban on Bitcoin mining was a mistake because it increased tax revenue for the United States. It's quite possible that China will study Bitcoin [...] and that the headlines will continue in that direction, especially with a possible pro-Bitcoin administration under Trump.
_{Roger Huang, China expert}

According to the expert Huang, China was also the first country to recognize the dangers of Bitcoin for state structures. At the same time, the USA - or at least some of its politicians - appear to be one of the few countries that also see the potential of Bitcoin as an opportunity. It remains to be seen whether China will be forced to rethink its stance in order to avoid falling behind in international competition, or whether it will maintain its position as a clear opponent of the USA and therefore of Bitcoin & Co.