As cryptocurrencies look to be on the road to recovery, with prices rising and daily signs that adoption is on the rise, authorities in China have begun floating the idea of lifting the country’s ban on crypto so that it can remain competitive in the global economic landscape.

Huang Yiping, a former member of the Monetary Policy Committee at the People’s Bank of China (PBoC), recently voiced his concerns about the future of fintech in China and believes the government should reevaluate its position on the sustainability of a long-term ban on cryptocurrency trading.

According to a report from the South China Morning Post, Huang voiced his concerns during a speech in December, arguing that a permanent ban on crypto would lead to numerous missed opportunities for the country’s financial system, especially those related to blockchain and tokenization.

“Banning cryptocurrencies may be practical in the short term, but whether it is sustainable in the long run deserves an in-depth analysis,” Huang stated, while also acknowledging that doing so would not be an easy task. “There is no particularly good way to ensure stability and function as to how cryptocurrencies should be regulated, especially for a developing country, but ultimately an effective approach may still need to be found.”

Huang, who now works as an economics professor at Peking University’s National School of Development, made the comments as China is pushing to increase the adoption of its central bank digital currency (CBDC), the digital yuan. He suggested that the government should weigh the pros and cons of allowing private institutions to issue e-CNY-backed stablecoins to help facilitate the uptake process but admitted that it’s a “very sensitive” question.

China has long adopted a stance of “blockchain, not Bitcoin,” and Huang addressed these concerns as valid and acknowledged the many risks associated with cryptos like Bitcoin, which he said lacks intrinsic value and sees a significant number of transactions related to illegal activity.

Even with the ban in place, China has once again risen to become the second-largest Bitcoin miner in the world and still ranks in the top 10 on the Global Crypto Adoption Index, according to Chainalysis, whose data “suggests that the ban has either been ineffective or loosely enforced.”

Suzhou looks to become a metaverse hub

The Chinese city of Suzhou, which is located in the Jiangsu Province and is home to 12 million residents, has released a plan aimed at transforming the city into a hub for metaverse development and innovation.

As part of its plan to reach this goal, Suzhou is looking to entice at least 200 companies focused on creating virtual reality technology to establish their base in the city by 2025. It is estimated that the metaverse-related industry will be worth 200 billion yuan (US$29.77 billion) by 2025.

The metaverse initiative will focus on 30 sectors of the economy, including tourism, education, healthcare and city administration. No budget for the plan has been released at this time.

China’s financial capital, Shanghai, has also released plans to develop its metaverse industry, including the launch of its first metaverse industrial fund in December with a goal of raising 1 billion yuan (US$149 million). Other cities that have followed a similar trajectory and published plans for metaverse development include Beijing, Guangzhou, Chongqing, Jinan, as well as the Zhejiang and Henan provinces.