- Wang Yongli, former Vice President of Bank Of China, reported on the cryptocurrencies.
- The digitalized currency should be governed and protected according to the law, which respects national sovereignty.
- The privacy integration in the cryptocurrency is very high and cannot be used in formulating regulations
Wang Yongli, former Vice President of Bank Of China, reported on the cryptocurrencies. It explained that Bitcoin and other altcoins are difficult to become a currency and said that only Central Bank Digital Currencies (CBDC’s) are just the currencies holding the value of Fiat Currencies in digital format.
The digitalized currency should be governed and protected according to the law, which respects national sovereignty. However, the different digital currencies cannot be judged or biased due to their various factors, such as adjustment and total scale.
If the country introduces the CBDC’s, then the origin, purpose, and development can be easily analyzed and integrated accordingly. Still, now with the term ‘Digital Currency,’ it has its added catches.
If a country integrates itself with a decentralized cryptocurrency, it flows in the direction of the denationalization of the country’s economy. It will disturb the country’s sovereignty and violates the logic and laws of monetary development. Due to this reason, he says it cannot be achieved.
As the country’s economy is dictated in terms of the volume of the gold and its value. The internet cryptocurrency cannot be used as a comparison or a model to use it as a currency as the crypto market is highly unstable, and no legal rules are governing them. The so-called cryptocurrency can only be used in circulation token in commercial groups and businesses.
The privacy integration in the cryptocurrency is very high and cannot be used in formulating regulations, and due to its privacy, it can be easily used in illicit activities. The further usage of crypto on the internet for fundraising and private placement of funds needs to be regulated under the laws.
The digital currency offered by a banking institution can only be a legal tender; it cannot be envisioned as a new digital currency or asset. If the CBDC’s are issued, they will be under the monitor of the central banks of one’s nation, and every activity related to the CBDC will fall under the bank and government’s jurisdiction.