In a news report published in The People’s Daily, government newspaper of China, feature that recognizes the profound impact cryptocurrencies could have, and concedes that they are challenging to ban entirely.
In the feature article, titled ‘The Ideal and Reality of Digital Currency,’ is written by a representative from the Chinese Academy of Social Sciences (CASS), and is educational in bent, exploring the potential uses of cryptocurrencies and the implications they have on existing monetary and financial systems.
“Both the traditional “private currency” and the new “private currency” similar to Bitcoin have affected the “monetary power” of the monetary authorities of various countries. However, from a technical point of view, it is difficult to achieve a complete ban on digital currency.”
Li Yang also explored the impact that cryptocurrencies could have on the way money can be sent, and questioned their definition as either commodities or currencies, “From a narrow perspective, digital currency represented by bitcoin has its own ‘monetary attributes’ that are more often regarded as special assets or commodities. Therefore, its actual impact is often not on the monetary level, but on financial markets.”
The idea of cryptocurrency functioning as an international reserve currency was also explored – with Yang expressing concern about their volatility limiting realistic application as currency:
“Of course, if there are too many price fluctuations, speculation, and deflation restrictions, digital currencies cannot be used for payments, as you will only get farther away from the ‘money experiment.’”