Central Bank Lu Lei: The closer Bitcoin gets to being an asset, the further it is from becoming a widely circulated currency

Golden Finance reports that Lu Lei, Deputy Governor of the People's Bank of China, stated in his preface to "Monetary Theory" that the urgent issue facing major developed economies is "saving central banks from central bankers."

Although this idea is not the current Central Bank Digital Currency (CBDC), because I believe CBDC does not change the institutional meaning of money increment, but is there a digital currency that can overcome various digital asset shocks, achieve stable coin effects and maintain sovereign currency existence (solving Euro’s problem of monetary unification but fiscal dispersion)? Currently, digital assets are following the old path of gold standard. The concept of stable coins is nothing more than a practical proposition for “soft version” optimal currency area theory.

In the field of monetary economics prediction and practice, two people deserve high respect - Robert Mundell who just passed away and Satoshi Nakamoto whose identity remains unknown. The latter watched as Bitcoin he created turned into an extremely expensive digital asset. Currently, energy consumed worldwide each year to mine last 2 million coins could be used by hundreds millions people for over a year. According to marginal cost pricing method, closer Bitcoin gets to being an asset further it moves away from widely circulated currency.