Joseph Chee, CEO and Chairman of Solana Company (NASDAQ:HSDT), said on Tuesday that China is “very closely” monitoring cryptocurrency and blockchains, while continuing to have reservations about how the technology is used.
China Can’t Ignore Crypto, Says Chee
During an interview with CNBC, Chee said that there are Chinese think tanks, academics and other groups who are familiar with the technology.
Chee, formerly head of UBS Asia investment banking and with extensive experience in China, said officials are still “very worried” about ordinary people getting exploited by the new technology.
“But they know that’s not the technology they can ignore,” he added.
Chee said China is using Hong Kong as a testing ground for how cryptocurrency-related systems might be implemented and managed.
Notably, Hong Kong is a growing hub for digital asset innovation, wealth and talent, ranking as one of the world’s most cryptocurrency-friendly cities
Crypto Education Key for Wider Adoption
Chee said China should prioritise education first, so that those responsible for managing cryptocurrency fully “understand how to manage” the technology before any wider rollout.
He said that China could continue restricting cryptocurrency trading and stablecoin issuance on the mainland, while allowing blockchain tools to support business and government operations.
Will China Really Open Up?
Beijing issued multiple restrictions between 2013 and 2021 that ultimately banned all cryptocurrency transactions and mining. China’s central bank formally declared all digital-asset trading illegal in September 2021, and providing such services to Chinese citizens from abroad is also prohibited.
The central bank reaffirmed the enforcement last year, voicing specific worries about dollar-pegged stablecoins. Instead. Instead, China has focused on advancing its central bank digital currency, the Digital Yuan.
Interestingly, President Donald Trump has consistently used China as a justification for advancing pro-cryptocurrency policies in the U.S.
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