Former deputy director of the PBOC, Wu Xiaoling Says Bitcoin can Co-Exist with Yuan

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Former deputy director of the PBOC, Wu Xiaoling Says Bitcoin can Co-Exist with Yuan

Bitcoin has got a boost from Wu Xiaoling, the former deputy director of the People’s Bank of China (PBOC) who says that digital currencies like Bitcoin can co-exist with the currency issued by the Chinese government. This is in contrast with the views expressed by the Chinese authorities wherein they issued a warning to the Bitcoin users as they don’t consider it legal.

Nonetheless, Wu Xiaoling talking before the Sanya International Finance Forum in Hainan said that private digital money could co-exist with currency issued by the Chinese government, the Yuan. Though Wu did not mention Bitcoin by name, forecast that the co-existence of private money and government money “will be a normal part of our world.”

However, it is clear that when it comes to digital currencies, Bitcoin is the one that has occupied not just the market but the popular imagination of the people. Coming from Wu who also is the dean of the Tsinghua University Wudaokou Finance College, this can have great implications for digital currencies, particularly, when there is no certain policy on it.

Interestingly, Wu did not use the term Bitcoin in his speech; rather, he used the terms “private digital money,” “algorithmic money” and “virtual money.” These definitely mean Bitcoin and other similar digital currencies that are already in existence. There is also huge scope for developing more digital currencies even by the government agencies.

Bitcoin can Play Vital role

During the panel discussion that followed her speech Wu admitted that digital currencies would cut cost and boost efficiency. Also, she added that the said currency is worth exploring and developing. Similar views came from Leon Lin, CEO of Huobi, a Bitcoin exchange in China, who was part of the panel discussion; he even appreciated Wu for her active support for Bitcoin.

Leon Lin says that Wu is the highest-ranking Chinese government official who had gave her approval of Bitcoin, which many governments still do not recognize. Though China does not recognize Bitcoin, a lot of stakeholders in the country feel that sooner or later it may embrace the digital currency as it has a lot of potential to counter the USD.

Also, for Bitcoin to become successful it must get acceptance in China, the second largest economy in the world. Already, there are some of the most advanced and sophisticated exchanges globally in China and some of the biggest mining equipment manufacturers and mining operations – this gives impetus to Bitcoin.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com