While Chinese authorities support blockchain development, they are hostile to cryptocurrencies. However, it turns out that even in this environment, opinions are divided. The former vice president of the People’s Bank of China (PBoC), Wu Xiaoling, believes that Bitcoin has received “Commercial success”. He adds that as the only project based on a block chain, cryptocurrency has emerged into wider awareness.
Bitcoin is the best child of blockchain technology?
She wrote this in the introduction to the book “Talking to Top Cadres about Digital Currencies”. She stated exactly that BTC is by far the most successful commercial application based on blockchain.
“Bitcoin is the best commercial blockchain technology application. Bitcoin, as a private currency, has a market base, but is also limited to a niche for private currency. “
– notes Wu.
I guess not to completely fall in power, she added that the cryptocurrency has significant disadvantages.
“Bitcoin, even as a private currency, has disastrous weaknesses, because the currency itself must have a certain stable value, and the value of Bitcoin changes a lot. “
She added. This is the most common argument critics attack BTC. Another thing is that today we have more currencies in the world that are rapidly depreciating, and yet no one claims that they are no longer currencies. Recent times have been a period of high volatility in many fiat currencies, including even the euro or dollar.
China: blockchain – yes, Bitcoin – no!
China’s policy towards blockchain is quite clear. President Xi Jinping himself admitted a year ago that he supported the development of this technology in his country.
The situation looks worse with cryptocurrencies, however. China in individual regions (remember that it is not so much a state as a civilization) prohibits the mining of digital currencies. They also work on a digitized yuan themselves. Advanced tests are already underway in several cities. Everything indicates that a new version of the Chinese currency will appear on the market this year. It is supposed to be a rival for the dollar (it can help circumvent the US sanction imposed on e.g. Iran or Russia) and Libra, the currency that Facebook is working on.