Wang Yongli, former vice president of the Bank of China: Using crypto assets such as Bitcoin to re-anchor currency is a misunderstanding of the laws of monetary development.

PANews reported on February 17 that Wang Yongli, former vice president of the Bank of China, wrote an article titled "Where Does the Huge Increase in Currency Come From?" In it, he pointed out that modern currency has completely transformed from a metallic standard paper money system to one that is no longer anchored to any specific tradable wealth. Monetary theory and practice have fully demonstrated that anchoring to any specific wealth will inevitably cause the total amount of currency to be difficult to change with the total value of tradable wealth, and will severely restrict or hinder exchange and economic and social development due to currency shortages. Therefore, returning to a metallic standard or finding a new anchor for currency (such as crypto assets like Bitcoin, rare earth elements, or energy) is a misunderstanding of the nature and development laws of currency.