27 June, Dalian-Li Daokui, Tsinghua University professor and former member of PBOC Monetary Committee, said Bitcoin would not replace fiats and Alipay couldn’t issue digital currency at the Davos Forum 2017. In a session themed “The Global Impact of China’s Financial Reform” , Li commented on virtual currency, saying that the critical issue about digital currency is who has the authority to issue the currency. Currency in the future would still be created only by governments.

He also said that Bitcoin used to be a financial asset but now is just another speculative object, the volatility of which makes it hard to use and therefore unlikely to be a real currency.

Bitcoin is around 17,650 CNY ($2,591) at press time while the number spiked to 21,200 ($3,110) on 11th June. The volatility issue is often debunked by bitcoin holders as they always believe that one bitcoin always equal to one bitcoin.

Professor Li believes that there must be a super-police to control the currency and the police may be the government. In the future central banks may issue a digital currency, but the authority wouldn’t allow others to issue digital currency.

However Li Xiaodong, Director of CNNIC (China Internet Network Information Center), thinks differently.

Li Xiaodong, Director of CNNIC. photo credit: TMTPOST

In Li Xiaodong’s view, currently the blockchain startups are facing great risks but also with great potentials.

“99 out of 100 blockchain start-ups will die. But the one that survive couldn’t make it without the other 99 companies.”

“Blockchain technology hast the potential to change the world just like internet, but it takes a long time for any new technology to mature. Blockchain is no exception.”

As for the definition of “long time”, Li Xiaodong said that might need 20 years.

Li Xiaodong also shared his outlook for bitcoin. Compared with traditional currency, Bitcoin features decentralization and global circulation and other advantages.

“Although it does not guarantee that Bitcoin will succeed in the future, it does represent the future direction.”

“People always embrace good things and abandon the bad. If the virtual currency is on the right track, why would people use currencies that have a lots of restrictions?”

Li Xiaodong said.

We can see the different mindsets between bureaucrats and technicians even within the institutions.

China Internet Network Information Center (abbreviated as CNNIC) is an administration and service organization set up in 1997. As an important constructor, operator and administrator of infrastructure in Chinese information society, CNNIC is responsible for operation, administration and services of fundamental Internet resources in China.