Digital Currency Workshop: An International Gathering
On October 12, Beijing played host to an innovative workshop that attracted delegates from over 40 countries. This gathering focused on one of the hottest topics in finance today: digital currencies. Organized by the International Telecommunication Union (ITU) and the Institute of World Economics and Politics at the Chinese Academy of Social Sciences (CASS), this event was a prime example of global collaboration in tackling the future of finance.
State Support: The Backbone of Digital Currency
A key theme throughout the workshop was the emphasized need for state endorsement when it comes to digital currencies. Yao Qian, the Director of the Digital Currency Research Institute at the People’s Bank of China, brought a critical perspective to the table. His remarks suggested that without government backing, cryptocurrencies like Bitcoin may be more akin to fashionable fads rather than secure currencies.
Questioning Bitcoin’s Sustainability
Yao’s skepticism aimed squarely at Bitcoin highlighted a significant point: “The value of a cryptocurrency like Bitcoin primarily comes from the speculation of the market. It will be a disaster if countries recognize Bitcoin as a real currency,” he stated. With such strong opinions from influential figures, it leaves many wondering what the future holds for decentralized cryptocurrencies as mainstream options.
The Role of International Speakers
The workshop featured a mix of international viewpoints, with speakers like Bilel Jamoussi of ITU, Njuguna Ndung‘u (former Governor of the Central Bank of Kenya), and Muhammad Arif Sargana (Director at Pakistan Telecommunication Authority). Each brought unique insights, further emphasizing the importance of collaboration across borders in addressing the future of digital finance.
Stabilizing National Currencies
“By issuing state-owned digital currency, countries could stabilize domestic fiat currency and secure their financial status,”
This sentiment echoed throughout many discussions, suggesting a potential shift towards favoring government-backed digital currencies over volatile public ones.
China’s Stance on Cryptocurrency
With recent crackdowns on Initial Coin Offerings (ICOs) and the temporary closures of Bitcoin exchanges, China has made its position clear: they aren’t fans of the wild west nature of public cryptocurrencies. But the recent conversations around a state-issued digital currency raise intriguing questions. Is China gearing up to unveil its own fiat-backed cryptocurrency?
The Shift Toward Digital Currency in China
As discussions evolve, we find ourselves standing at the precipice of what may be an exciting new chapter in finance. Perhaps China’s efforts to develop a state-backed option could redefine not just their financial landscape, but also inspire others around the globe to follow suit. Who knows? Maybe the future is not just digital money, but government-approved digital money.
