Opinion: Domestic re-evaluation of the balance between innovation and regulation in the cryptocurrency field, improving internal systems and strengthening international regulatory cooperation

PANews January 17 News, Caixin.com published an article authored by Zhang Ming, Deputy Director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, titled “How China Can Respond to the Challenges of Cryptocurrency.” The article points out that as the world’s second-largest economy and an emerging digital financial powerhouse, China needs to play a more active role in global digital currency governance. This can start internally by improving its own response system, including accelerating the development and application of digital RMB, promoting intelligent and precise regulation of cryptocurrencies, and quickly advancing the formulation and implementation of unified international regulatory standards (such as anti-cryptocurrency money laundering rules). Additionally, China should reassess the balance between innovation and regulation in the cryptocurrency sector, promote the integration of stablecoins with the traditional financial system within a controllable scope, and strengthen international R&D and cooperation in the CBDC field as well as international regulatory cooperation in the cryptocurrency sector.