China’s Crypto Mining Ban Can Benefit Us Economy

Wang Yang Warns China - Mining Ban Can Benefit US Economy

Wang Yang, Vice President of the Hong Kong University of Science and Technology, raised significant points about the implications of China's cryptocurrency policies during the Hashkey New Vision 1 event on June 26. He emphasized that Hong Kong should not drive away cryptocurrency companies that do not transact with Hong Kong citizens, highlighting their potential to invigorate Hong Kong's virtual asset ecosystem.

Yang criticized China's decision to ban crypto mining, suggesting it has inadvertently handed a substantial tax revenue opportunity, estimated at $4 billion, to the United States. He argued that instead of an outright ban, China could explore allowing state-owned enterprises to engage in mining or take stakes in mining operations, ensuring better risk control. Such a strategy could safeguard economic interests while maintaining oversight.

Broader Impact

Yang also touched on a broader perspective, urging China to reconsider its stance on digital assets. He proposed that embracing digital assets could align with the development goals of the "Belt and Road" initiative, eventually facilitating the tokenization of Real-World Assets (RWA). He acknowledged the current challenges where cryptocurrencies are perceived as uncontrollable, but suggested that China's strategic path might necessitate this shift. Furthermore, he hinted that if Donald Trump were to return to power, China might need to rapidly reassess its policies in this domain.

Reflecting on his past skepticism, Yang admitted to missing significant opportunities by dismissing Bitcoin and blockchain as scams in 2012 and 2014. This personal anecdote underscored a broader sentiment of missed potential and the need for Hong Kong to accelerate its service pace and adopt a more ambitious, forward-thinking approach. He called for Hong Kong to aspire to lead regional development, particularly in blockchain technology.

Yang's comments underscore a critical crossroads for China and Hong Kong in the evolving landscape of digital assets. His insights suggest that a strategic pivot could harness the economic and technological potential of cryptocurrencies, positioning the region as a leader in the digital asset revolution.

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