Zhu Guangyao highlights crypto’s risks and opportunities amid growing international interest.

China’s former Minister of Finance, Zhu Guangyao, has urged Beijing to pay closer attention to the cryptocurrency industry, particularly in response to recent comments from Republican U.S. presidential candidate Donald Trump. Speaking at a forum hosted by Tsinghua University, Zhu acknowledged both the risks and potential of crypto within the global digital economy.

Zhu noted the negative impact cryptocurrencies can have on capital markets but stressed that China must not ignore the latest international developments. “Crypto has negative impacts, and we must fully recognise its risks and the harm it poses to capital markets,” he stated. However, he added that it is “a crucial aspect of digital economy development.”

Trump’s Warning on Crypto

Zhu’s comments follow Trump’s remarks at the Bitcoin Conference in Nashville, where the former U.S. president suggested that America must embrace cryptocurrency or risk China overtaking in this sector. Trump compared crypto to the steel industry of the past, stating, “You’re just in your infancy. One day, it probably will overtake gold. There’s never been anything like it.”

Zhu pointed to these comments as a wake-up call for Beijing to take further action in evaluating its stance on the crypto industry.

Hong Kong’s Approach

While mainland China remains wary of cryptocurrencies, Hong Kong has taken a more open approach. The semi-autonomous city has embraced the industry, listing bitcoin and ether exchange-traded funds (ETFs). Some legislators in Hong Kong are actively encouraging the sector to set up operations in the city, highlighting a stark contrast to the mainland’s cautious stance.

Zhu also referenced the approval of bitcoin and ether ETFs by the U.S. Securities and Exchange Commission (SEC) as evidence of shifting international policy, further reinforcing his call for China to re-evaluate its approach to digital currencies.