The former head of the People’s Republic of China Central Bank made statements about the root causes of the cryptocurrency crisis in the country. cryptocoin.com As a result, we will now look at the details of the explanations on this subject, especially Bitcoin.
What’s wrong with Bitcoin?
The former chairman of the People’s Bank of China expressed his views that traditional cryptocurrencies cannot be a viable means of payment within traditional economic systems. The former head of the People’s Bank of China shared his view on CBDCs and their role in the modern economy, and also commented on the real reason behind the recent crackdown on cryptocurrencies in the country. The former head of the People’s Bank of China says he believes China will find and use the best possible way, while other countries use different ways to implement digital currencies in their economic systems.
As Zhou Xiaochuan, former chairman of the People’s Bank of China, noted, the most basic function of a currency is to make payments; otherwise, it is inherently useless in the traditional economic system. Although currency has a storage function, its usefulness for payments stands out as a priority function. With the introduction of CBDCs, the economy will have gained numerous advantages such as lower costs, greater convenience and stability. They are more convenient than traditional payment methods and offer more flexibility. Businesses will also benefit from the digitization of the economy. Small businesses will have the opportunity to create a more effective and easier accounting framework.
Not a suitable payment method
Referring to the latest actions from the Chinese government towards traditional cryptocurrencies and cryptocurrency mining, Zhou, the former chairman of the People’s Bank of China, said that it is “survival of the fittest” as decentralized blockchain-based digital currency is not the most viable payment method for traditional economies. the fittest). Most likely, the former head of the People’s Bank of China talked about the scaling problems of modern cryptocurrencies, which include fees, network congestion, and transaction speed. China’s crackdown on cryptocurrencies accelerated with the shutdown of the country’s Bitcoin exchange in 2017. Recently, crypto miners have left the country and sought to find new countries for themselves.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. Therefore, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.