The former vice president of the People’s Bank of China, Wu Xiaoling, praised what she calls a “commercial success” for Bitcoin on June 5. According to the local Chinese outlet, Sina, Wu stated in the preface of the book, “Talking to Top Cadres about Digital Currencies,” that the crypto is the most successful commercial application of blockchain so far. The former vice president of the People’s Bank of China asserted that no other blockchain-related project had achieved the commercial success of the Bitcoin network.
“Bitcoin is the most commercial application of blockchain technology.”
While praising the leading cryptocurrency, the former PBoC executive also pointed out some weaknesses of the bitcoin network. She said that bitcoin is the most successful commercial application of blockchain technology. Bitcoin, as a private currency, has its market base, but it is also limited to the private currency field, she added. She further noted that with a sovereign state’s existence, it is not possible for bitcoin to replace the fiat currency issued by the state. She opined that bitcoin, even as a private currency, has fatal weaknesses because the currency itself must have a specific stable value, but the value of bitcoin fluctuates greatly.
China is expected to launch its national digital currency soon.
The People’s Bank of China has been working on its national digital currency for the last five to six years, and the central bank is expected to launch its CBDC dubbed as DCEP sometime this year. China is looking to accelerate the rollout of its national digital currency to counter potential US threats to Chinese financial institutions and the yuan’s international settlement. As reported earlier, digital yuan would facilitate the implementation and management of large-scale post-COVID-19 stimuli in the country. Several experts and economists have argued that China’s national digital currency could threaten the global dominance of the US dollar.
