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Former Vice President of Bank of China: Bitcoin will harm dollar hegemony
Wang Yongli, former deputy governor of the Bank of China, has criticized US President-elect Donald Trump’s proposal for Bitcoin reserves, arguing it conflicts with Trump’s goal of maintaining the dollar’s global dominance.
“Bitcoin’s decentralized nature does not provide an advantage in strengthening the dollar’s global position. On the contrary, excessive deregulation and impeding the development of the digital dollar could harm the dollar’s international standing,” Wang wrote in an op-ed published in a Chinese state-run financial magazine.
The former banker has questioned the feasibility of establishing a national Bitcoin strategic reserve, warning that neither government nor central bank Bitcoin reserves would pose significant risk and uncertainty.
He emphasized the limitations of the U.S. Treasury’s Foreign Exchange Stabilization Fund, which was worth $206 billion as of the end of November, and pointed out that it is not enough to raise meaningful reserves without additional debt. He also said confiscated bitcoins (Trump’s original proposal was to divert bitcoins seized from Silk Road and other criminal enterprises into hoards) should be returned to their rightful owners.
Recent U.S. policy changes, including the approval of a spot Bitcoin exchange-traded fund (ETF) and Trump’s election victory as a cryptocurrency-backed candidate, have prompted some former Chinese officials to re-evaluate the country’s approach to cryptocurrencies. Former Vice Minister of Finance Zhu Guangyao publicly called for a reevaluation of China’s cryptocurrency policy, and former Finance Minister Lou Jiwei called for closer monitoring of cryptocurrency development.
Last year, there was speculation that China might relax its stance on cryptocurrency by the fourth quarter. Although it did not materialize, the country has continued pilot testing of e-CNY, a central bank digital currency (CBDC). China’s central bank, the People’s Bank of China, insists that e-CNY is the only legal digital currency and considers all alternatives illegal.
Wang added that while Bitcoin can serve as tradable wealth, it cannot replace sovereign currency.
Korea’s dream of introducing cryptocurrency becomes a reality
According to domestic media reports, the Financial Services Commission of Korea (FSC) plans to gradually allow companies to invest in cryptocurrency.
The Financial Supervisory Commission reportedly announced on January 8 that it plans to gradually review whether to allow corporate real-name accounts through the Cryptocurrency Committee scheduled to be held on January 15.
In Korea, cryptocurrency traders must open a real-name account with a local bank that has an official partnership with the trading platform to access fiat-to-crypto services. Until now, institutions have had difficulty accessing these real-name accounts, effectively banning companies from investing in cryptocurrency.
Last year, the FSC rejected a report by the Korea Economic Daily that claimed the commission had established a phased plan to allow corporate cryptocurrency trading from 2025. The FSC dismissed the report, arguing that no decision had yet been made at that time. .
Local media doubled down on the initial report following the FSC announcement this week, saying the financial watchdog plans to prioritize universities and local authorities in the initial rollout.
Businesses are not expected to be the first beneficiaries, according to Joo Ki-young, CEO of data analytics firm CryptoQuant. In a previous interview, Joo told the magazine that he expects businesses to participate in institutional cryptocurrency adoption only after South Korea’s cryptocurrency tax regulations come into effect. Lawmakers postponed the start date of the 20% cryptocurrency tax to 2027, marking the third consecutive two-year delay.
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More deepfake romance fraudsters arrested in Hong Kong
Hong Kong police arrested 31 suspects on suspicion of using deepfake technology to defraud victims in Taiwan, Malaysia and Singapore, local media reported.
The Commercial Crime Branch raided two fraud centers operating from industrial premises. The syndicate operated two shifts each day, recruiting con artists (often young students) in exchange for cash.
Police reportedly confiscated 34 million Hong Kong dollars (about $4.37 million) in fraudulent proceeds during this operation.
Recruits used deepfake technology to pose as attractive women to carry out romance scams, commonly referred to as pig slaughter. These scams involve building trust with victims through dating apps before defrauding them.
Pig slaughter scams are often linked to fraud centers in Southeast Asia, such as Cambodia and the Philippines. Unlike paid scammers in Hong Kong, some of these victims are believed to be kidnapping victims who were forced to work as scammers.
This is the second largest deepfake pig slaughter case in Hong Kong jurisdiction in recent months. Last October, police raided another romance fraud ring that netted $46 million, arresting 27 suspects.
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Thailand conducts cryptocurrency payment trial in Phuket
Thailand is set to launch a pilot program to test cryptocurrency payments in Phuket, a popular destination for tourists. The aim of the initiative is to boost the domestic tourism sector while providing alternative payment options for foreign visitors.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira unveiled the plan at a seminar hosted by the Marketing Association of Thailand on January 8.
The pilot seeks to integrate digital currency into everyday transactions for tourists, operating within the existing legal framework, avoiding the need for legislative changes.
On a pilot basis, tourists will complete identity verification before registering and purchasing Bitcoin through a licensed Thai exchange. The project focuses on improving digital payment accessibility in major tourist cities and helping Thailand remain competitive in the global tourism market.
Thailand has previously considered using blockchain and cryptocurrencies to support tourism. In 2021, the Tourism Authority of Thailand proposed TAT Coin, a digital token designed to attract cryptocurrency enthusiasts and revive the industry after the pandemic.
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Yoon Yohan
Yohan Yoon is a multimedia journalist covering blockchain since 2017. He contributed as an editor to Forkast, a media outlet specializing in cryptocurrency, and covered Asian technology stories as an assistant reporter for Bloomberg BNA and Forbes. He spends his free time cooking and experimenting with new recipes.