China Doesn't Need Legal Digital Tender, Central Bank Advisor Says
Song Yikang
/SOURCE : Yicai
China Doesn't Need Legal Digital Tender, Central Bank Advisor Says
(Yicai Global) June 4 -- There no need for China to sue legal digital currencies, according to a leading scholar at the country's central bank who believes bitcoin utopian and virtual currencies are not currencies. /n/n/n/n/n "Bitcoin seeks to denationalize currencies," Sheng Songcheng, an advor to the People's Bank of China and former head of the bank's stattics and analys department, said at the China Financial Innovation Forum on June 2. H speech echoed h words at the Boao Forum for Asia in April, which slammed blockchain's place in the financial world.

Bitcoin and blockchain are buzzwords in the fintech field, but digital tenders which use blockchain are not real currency as they don't meet the basic conditions required to be so, he added, pointing out bitcoin's limited quantity and volatile value.

Currencies must also be sued by the state, he continued, saying no government would abandon monetary policy for the foreseeable future and would only strengthen it.

"Major countries have all rejected virtual currencies as tender", he added. "There seems to be no need for central banks to sue a so-called digital legal tender. Exting payment systems are safe and convenient. Digital currencies can track fund movements, but e-money can also do that."

The framework for the circulation of legal tender yet to be determined, and th problem cannot be solved just technically, he added. "Issuing digital currencies involve very high implicit and explicit costs. Some sues not only fall under the category of finance, but also have implications for the whole of society."

Editor: Emmi Laine

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Keywords: Bitcoin , Digital Currencies , Virtual Currencies , Central Bank , Pboc