A leading Chinese blockchain expert opposes the adoption of cryptocurrencies, calling them Ponzi schemes, but does not rule out using stablecoins if properly regulated. Meanwhile, digital yuan (e-CNY) transactions exceeded $73 million in Guangzhou alone.
Yifan He, CEO of the large technology firm Red Date Technology, expressed his distrust of various cryptocurrencies in a local newspaper.
Yifan He is one of China’s key blockchain experts and executive director of the Development Alliance of China’s state blockchain platform Blockchain Service Network (BSN). In his opinion, all unregulated cryptocurrencies, particularly Bitcoin (BTC), are the “biggest Ponzi scheme in human history.”
He backed up his skepticism toward the crypto market with Terra’s collapse and also mentioned the popular concept of Move-to-Earn projects, calling the model a “phishing strategy.” Recall that the servers of STEPN, the most popular M2E project, were recently attacked.
The expert completely distrusted the first cryptocurrency and stressed that he has never had a crypto wallet and has not used digital assets. He said he does not intend to use cryptocurrencies until they are properly regulated. In this context, the Chinese expert called the adoption of BTC as legal tender by states such as El Salvador and the CAR an unwarranted risk for an entire country.
At the same time, Yifan He believes that part of the crypto market may succeed. In particular, the matter concerns USDC or USDT stablecoins. The Chinese expert considers them to be means of payment and not speculative assets. Therefore, in case of their full regulation by the government, they can become useful for the economy.
It is worth noting that Yifan He’s opinion is entirely in line with the official policy of the Chinese government, which calls for stricter oversight of the cryptocurrency market and focuses on implementing central bank digital currency (CBDC). For example, e-CNY transactions exceeded 490 million CNY ($73.2 million) in just two and a half months in the southeastern Chinese city of Guangzhou. The local media report this.
The digital yuan began circulating in Guangzhou in April when the e-CNY testing program expanded to 11 Chinese cities. As of June 15, the average transaction size in Guangzhou was 134 CNY ($20), with more than 2 million private and 195,000 corporate accounts opened.
A recent Bank for International Settlements (BIS) survey showed that nine out of ten central banks are studying CBDCs.
