‘Bitcoin is the most successful blockchain application’

Although China is reluctant to regulate cryptocurrencies, senior government officials acknowledge the potential of an economy based on digital currencies.

Recently, Wu Siaolin, a former governor of the central bank of the country also commented Bitcoin .

The Chinese publication Sina reports that Xiaolin accepts Bitcoin as the most successful commercial blockchain application, emphasizing that countries and corporations still have a lot to learn about the application of the technology. 

Xiaolin pointed out that digital currencies and the digitization of existing currencies should be based on financial services. Examples included investing, financing and executing transactions through a blockchain framework.

She noted that digital assets are flexible. They can find their place among other payment instruments, virtual goods, currencies and even securities within certain limits.  

Xiaolin seemed to be referring to the tokenization of physical property by mentioning ‘ virtual goods ‘.

However, she called for a mature approach when enforcing rules and building a financial infrastructure for digital currencies. Xiaolin noted that innovation cannot replace existing financial regulations:

In the future, digital currencies will be increasingly integrated into social behavior, and we must have a prudent and objective understanding of it.

The former governor of the People’s Bank of China recently wrote in ‘ Talking with Leading Cadres about Blockchain ‘ that there is no other blockchain application that is close to the success of Bitcoin.

Xiaolin, however, does not think that Bitcoin can replace government currencies. She noted that BTC has a ‘ fatal weakness ‘ – its volatility. Some would call this characteristic ‘ the greatest power of cryptocurrency ‘, but this mood does not seem to resonate with Siaolin, which is to be expected given her socialist beliefs.