Wang Yongli: Using Bitcoin and Other Crypto Assets to Re-anchor Currency Misinterprets the Laws of Monetary Development

Odaily News Former Deputy Governor of the Bank of China, Wang Yongli, authored an article titled "Where Does the Massive New Increase in Money Come From?" In it, he points out that modern currency has completely transformed from metal-backed paper money into a form that is no longer anchored to any specific tradable wealth category. Both monetary theory and practice have fully demonstrated that anchoring to any specific wealth will inevitably make it difficult for the total money supply to adjust in line with changes in the total value of tradable wealth. This would severely constrain or hinder exchange transactions and socio-economic development due to a shortage of money. Therefore, reverting to a metal standard or seeking new anchors for currency (such as Bitcoin and other crypto assets, rare earths, energy, etc.) are misinterpretations of the nature and developmental laws of money.