Former China official believes virtual currencies will replace fiat

The last few years have been one of extreme technological disruption worldwide. Artificial Intelligence, Internet of Things and of course the Blockchain technology, are just some of the technologies that came to change everything forever. So it is no surprise that governments around the world are increasingly interested in the potential of these technologies. Which is why a former Chinese official believes that virtual currencies will replace fiat.

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The weight of virtual government currencies
Governments don’t like crypto-currencies. There’s nothing surprising about this statement. After all, crypto currencies were created with the aim of wiping out fiat money around the world. By taking the monopoly on money away from governments, to put control of it in the hands of society.

However, governments like the Blockchain technology. So they have invested millions of dollars every year for training, research and development of products based on the blockchain. This has become a real technological race between countries like India, China, Russia and the United States to become Blockchain superpowers.

And among the most outstanding products developed by governments, taking advantage of the Blockchain technology, are the virtual government currencies. Virtual currencies designed by the central banks of several countries in the world, which seek to take all the advantages offered by crypto-currencies. And integrate them with the absolute control over the emission of fiat money that central banks exercise.

Thanks to these, dozens of countries around the world are considering creating their own virtual currencies. While the Chinese government is already preparing the final details for the definitive launch of its own virtual currency. It is taking the lead in the effort to dominate this sector of the technological world.

China is trying to take the lead with the Blockchain (BSN)

The words of a Chinese official
This situation of accelerated development of virtual government currencies has led several analysts to wonder whether they will have the capacity to replace traditional fiat money throughout the world. One former official at the People’s Bank of China (PBoC), China’s central bank, believes they will.

Thus, Wang Yongli, who was Vice President of Bitcoin Era and is now Director of the Haixa Blockchain Institute, recently commented that China may have an interest in replacing all its fiat money with its new government virtual currency.

If true, this would mean that the people of China would have a significant advantage in conducting domestic and international operations. They would be able to do so directly, rather than through dozens of intermediary banks as is currently the case.

However, even though China’s virtual government currency would bring many of the advantages of crypto currencies to the majority of the population. It would still be under strict government control, precisely what the cryptoactives wanted to avoid. Which makes the possibility considered by Wang Yongli our Tip of the Day here at CryptTrend.