Viewpoint: The domestic sector can re-examine the balance between innovation and regulation in the cryptocurrency field, improve internal systems, and strengthen international regulatory cooperation

Caixin published an article titled "What Measures Can China Take to Address the Challenges of Cryptocurrency" by Zhang Ming, Deputy Director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences. The article points out that as the world's second-largest economy and an emerging digital finance powerhouse, China needs to play a more active role in global digital currency governance. It can start from within by improving its own response system, including accelerating the development and application of the digital yuan, promoting the intelligent and precise regulation of cryptocurrencies, and quickly advancing the formulation and implementation of unified international regulatory standards (such as anti-money laundering rules for cryptocurrencies). Additionally, it is essential to reassess the balance between innovation and regulation in the cryptocurrency field, promote the integration of stablecoins with the traditional financial system within a controllable range, and strengthen international research and cooperation in the CBDC field as well as international regulatory cooperation in the cryptocurrency sector.