In a recent panel discussion held in Hong Kong, Professor Wang Yang, a well-respected figure in the academic world and the vice president for institutional advancement at the Hong Kong University of Science and Technology (HKUST), expressed his strong criticism towards China’s decision to ban cryptocurrency mining. Professor Wang deemed this decision as “very unwise” due to its unintended consequence of diverting businesses to the United States, thereby boosting American tax revenue.
To address the risks associated with cryptocurrency mining, Professor Wang put forward an alternative approach that China could have taken. He suggested that the Chinese government could have directed state-owned enterprises to invest in domestic cryptocurrency mining firms. By doing so, China would have been able to mitigate the risks while also supporting the growth of its own domestic industry.
Despite China’s crackdown on cryptocurrency mining, Hong Kong, a Special Administrative Region of China, is actively striving to position itself as a hub for virtual assets. The region has taken significant steps in this direction, such as licensing crypto exchanges and introducing crypto exchange-traded funds (ETFs).
Looking towards the future, Professor Wang proposed tokenization as a strategic solution for China to navigate geopolitical risks. He anticipates that within the next three years, there will be a significant breakthrough in the market as attitudes towards digital assets continue to evolve.
Overall, Professor Wang’s insights shed light on the potential consequences of China’s cryptocurrency mining ban and provide valuable suggestions on how the country can adapt its approach to better manage the risks involved.
