Digital currencies can substitute cash in circulation, Ex-Chinese central bank exec
|- Wang Yongli, former vice president of China’s central bank, said that cryptocurrencies can replace fiat money.
- Yongli believes that digital assets can reshape monetary structures.
Wang Yongli, former vice president of China’s central bank, has endorsed central bank digital currencies (CBDC) as a viable substitute for cash in circulation. According to a Global Times report, Yongli said that though cryptocurrencies can be a substitute for fiat, they shouldn’t be confined to just that.
Yongli believes that digital assets can reshape monetary structures. For instance, “basic accounts” for all social entities can be set up on a central bank’s digital currency platform. This will let the bank oversee cryptocurrency transactions without much impact on the present financial system.
The former executive added that cryptocurrencies improve monetary policy effectiveness as it will reduce the excessive issuance of paper money. Yongli’s words come at a time when countries around the world are increasingly considering launching their own CBDCs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.