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China's Crypto Mining Ban Was 'Very Unwise,' Says Hong Kong Academic

Published 27/06/2024, 14:53
© Reuters.  China\'s Crypto Mining Ban Was \'Very Unwise,\' Says Hong Kong Academic
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Benzinga - by Murtuza Merchant, Benzinga Staff Writer.

Wang Yang, Vice President of the Hong Kong University of Science and Technology (HKUST), has criticized China’s complete ban on cryptocurrency mining, calling it a missed opportunity.

What Happened: Speaking at the Hashkey New Vision 1 event on Wednesday, Wang argued that the ban has inadvertently benefited the United States, driving miners there and generating an estimated $4 billion in tax revenue.

“It is very unwise to completely ban mining,” Wang stated.

He proposed alternative solutions such as state-owned enterprises participating in mining or holding shares to manage risk.

Wang’s comments highlight a growing debate within China regarding its stance on cryptocurrencies.

He suggested a potential reevaluation of digital assets, particularly in light of the “Belt and Road” initiative, which could benefit from tokenization.

However, Wang acknowledged concerns about potential lack of control within the cryptocurrency space.

Also Read: Ethereum ETF Inflows Could Be Up To 50% Of Bitcoin ETF Inflows: Galaxy Research

He suggested that a complete shift might be necessary, especially if former U.S. President Donald Trump regains power.

“If Trump comes to power, China will need to re-evaluate all these policies in a very short time,” Wang said.

Wang also admitted to previously underestimating the potential of Bitcoin (CRYPTO: BTC) and blockchain technology, missing investment opportunities.

He emphasized the need for Hong Kong to play a more proactive role in the development of the digital asset ecosystem.

“Hong Kong’s pace in service is too slow, and we seem to be satisfied with the status quo,” Wang critiqued. “Hong Kong should have a higher goal, determination, or even a belief, to lead the development of the entire region.”

The Benzinga Future of Digital Assets event on Nov. 19 promises a platform for industry leaders to discuss these complex issues and explore the future of this transformative technology.

Read Next: Bitcoin Continues Sideways Despite $21M ETF Inflow On Wednesday

Image: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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