#Wang Yongli Discusses the New Bitcoin Policy#

Wang Yongli, former vice president of the Bank of China, wrote an article in the magazine "China Foreign Exchange", expressing cautious views on Trump's new policy on Bitcoin. He believes that Bitcoin is unlikely to become a true currency, let alone replace sovereign currencies. He pointed out that Bitcoin, as a new type of tradable digital asset, has a fixed total amount and its price fluctuates dramatically, which does not conform to the basic laws of monetary development. Its security and risk management are still immature. Moreover, he believes that the feasibility of Bitcoin as a national strategic reserve is fraught with risks and uncertainties, and he calls on the international community to respond rationally and avoid blindly following the trend. Wang Yongli also emphasized that excessive deregulation or weakening the status of the US dollar could have negative consequences. He believes that Bitcoin highly imitates gold at the level of "currency", but its total amount and phased increments are completely set by the system, which is more stringent than gold and cannot grow with the growth of tradable wealth value, which does not meet the essential requirements of currency. He pointed out that Bitcoin is a purely chain-born digital asset, not a natural physical asset. Once it loses trust, it will vanish into thin air and be worthless, with risks far greater than gold.