Wang Yongli: Using crypto assets such as Bitcoin to re-anchor currency is a misunderstanding of the laws governing monetary development.

In his article "Where Does the Huge Increase in Currency Come From?", Wang Yongli, former vice president of the Bank of China, pointed out that modern currency has completely transformed from a metallic standard paper money 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 money 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 the metallic standard or finding a new anchor for currency (such as crypto assets like Bitcoin, rare earths, energy, etc.) are misunderstandings of the nature of currency and its development laws.