On 5 June, the Ex-Vice President of the People’s Bank of China (PBoC), Wu Xiaoling, praised Bitcoin for its “commercial success.” The statement was revealed by a domestic outlet in China, which said that Xiaoling had written in the preface of a book called Talking to Top Cadres about Digital Currencies that cryptocurrencies were the most successful application of blockchain technology until now.
However, she also underlined a number of challenges the digital currency is yet to face.
“Bitcoin Successful, but Limited”
She also said that from several use-cases of blockchain, nothing has yet achieved the success of Bitcoin:
“Bitcoin is the most successful commercial application of blockchain technology.”
However, she also stressed that despite its success and a strong market base, Bitcoin is essentially limited to the private currency field.
“Bitcoin, as a private currency, has its market base, but it is also limited to the private currency field.”
Xiaoling, other than praising Bitcoin and cryptocurrencies in general, also highlighted some of their disadvantages. She said that in a sovereign state, digital currencies cannot replace the fiat currency issued by that state. She also added that even as a private currency, these digital currencies must have a stable value, but their values are volatile to a great extent.
However, Xiaoling still expressed optimism about the future of digital currencies in the world and China. She said that in the coming times, crypto would increasingly be adopted and it is indispensable for people to have an understanding of it.
Support for Crypto Pouring In
The arrival of the pandemic has witnessed disaster after disaster. It has also made entities around the world question the existing systems. A call for change is made and more than once, crypto has been shown support by politicians and institutions alike.