China’s former Finance Minister, Zhu Guangyao, has urged Beijing to closely monitor the cryptocurrency sector following recent comments by U.S. Republican presidential candidate Donald Trump. Speaking at a summit organized by Tsinghua University, Zhu emphasized the risks that crypto poses to financial markets but also highlighted the importance of understanding global developments and policy changes in this area, given its growing role in the digital economy.
Zhu cited Trump’s remarks as a catalyst for further scrutiny. During the Bitcoin Conference in Nashville in July, Trump expressed strong support for the crypto industry, stating that the U.S. must fully embrace it or risk falling behind China. Trump likened the crypto industry to the steel industry of the early 20th century, predicting that it could one day surpass gold in value.
Zhu also referenced the U.S. Securities and Exchange Commission’s (SEC) approval of Bitcoin and Ether exchange-traded funds (ETFs) as an important development, despite early resistance. While mainland China remains wary of cryptocurrency, Hong Kong has taken a more open approach, allowing the listing of Bitcoin and Ether ETFs and encouraging the industry to establish a presence in the city.
