Digital currency-from information network to value network

[hl5460]

From 12th to 14th Dec, the Sanya International Financial Forum will see the presence of elites from political business and institutional. One of the track theme is “Digital currency-from information network to value network.”
It’s the very first time that “digital currency” has been mentioned in such a high-profile financial forum. It somehow suggests the main stream adoption. Keynote speaker is Wu Xiaoling, former VP of People’s Bank of China and incumbent Vice Director of National Financial and Economic Committee. Other speakers include Wang Yongli, former VP of Bank of China; Xiao Feng,Vice Chair of Wanxiang Group, Leon Li, founder and CEO of Huobi; Sha Qian, author of Unowned Currency: 2014 Report of Cryptocurrency in China.

[hl5460]

Wu Xiaoling is the keynote speaker of the forum. She is former VP of People’s Bank of China and incumbent Vice Director of National Financial and Economic Committee


Official link:
http://www.npc.gov.cn/delegate/viewDelegate.action?dbid=122273

[hl5460]

Wu said:
Cryptocurrency only solve the trust issue but the missing of supply-demand mechanism that is required to meet the economic demand makes it impossible to solve the volatility issue
It could be financial products, financial assets but never a good currency.

[hl5460]

The transformation of cryptocurrency into currency is subject to the approval of participants and stability of currency value.  The essence of money is measure of values,  medium of exchange and storage of value
Credit-based currency is created as the gold standard money couldn’t meet the demand of economic development.

[hl5460]

Section 2 titled: It’s difficult to change the way that currency is created with information technology but it could be used to change the realization of currency payment.
Digital currency is divided into electronic currency and virtual currency, which is sub-divided into community currency and algorithm currency.
Electronic currency is the digital projection of fiat currency.
Virtual currency: community currency is issued by issuers within a certain community. Algorithm currency has no central issuer and based on maths.

[hl5460]

It’s an ideology to create a currency backed by computing power to meet the demand of the global economy development. Variety of algorithms will lead to multiple algo-currencies, which gives rise to the exchange issue among these algo-currencies, which is also a problem of current international monetary system.


Currently, settlement of the fiat currency is handled by centralized network.
The open-sourced decentralized technology creates a network of information and we may adopt such technology to complete transfer of value in a cost-effective way.

[hl5460]

From 12th to 14th Dec, the Sanya International Financial Forum

Thanks for sharing this hl5460...
Please keep the updates coming...
 

Still working on the translation, it is x-post from 8btc.com and here is the Chinese thread.

[hl5460]

Pending issues arising from decentralized international remittance
In order to maintain the social, economic and financial order, cracking criminal and money laundry operations, the settlement of digital fiat currency and algo-currency (cryptocurrency) that are exchangeable with fiat must comply with regulatory requirements, in other words, the transaction should be traceable.

The decentralized international payment system at its prsent stage makes it a potential challenger for the current international settlement system. Multiple settlement protocols will live together at the moment. However, using technology to build network of value transfer is a direction worthy of more consideration.

[hl5460]

That's pretty much of Wu's views.

[hl5460]

Most of the cryptocurrency fans in China considered the feedback on the forum positive and were surprised by her sound comprehension on cryptocurrencies.
In the Q&A session, she denied the possibility of fiat being replaced by cryptos.

[hdbuck]

so is it the return of Chinese bubble gambling style?

[grappa_barricata]

thanks for the time you dedicated into spreading this information to non-chinese speakers, much appreciated