Taiwan wants to protect itself from the collapse of the crypto currency

A senior official from Taiwan calls on the government to pursue a policy aimed at eliminating the potential impact of the crypto currency on the island's financial stability.

Speaking at a seminar organized by the Taiwan Academy of Banking and Finance on February 2, Shi Zhong-ji, vice president of the executive branch of Taiwan, considered issues related to the financial consequences of crypto-currency and travel by regulatory responses.

According to the government report, Shi said that in the context of rapid development of the crypto currency in recent years, Taiwan should actively participate in studies aimed at enhancing the impact of technology on finance. In addition, the country should have good opportunities to maintain financial stability in the event of a market collapse, the official said.

The official, who was previously chairman of the Taiwan Financial Supervisory Commission from 2016 to 2017, explained that bitcoine's market capitalization is about $ 160 billion when it trades at $ 10,000 - a figure equal to one-third of Taiwan's foreign exchange reserve, double the size of the budget and the total amount of all banks in Taiwan.

While the growing cost of bitcoin led to the conviction that the crypto currency is a financial bubble, Shi said that the price spike does not necessarily mean that it is so.

Nevertheless, he came to the conclusion that the government should begin to study measures to ensure the ability to cope with the consequences in the event of a sharp drop in prices.