Former Deputy Governor of the Bank of China: Rationally View Trump's New Bitcoin Policy, Do Not Blindly Follow the Trend

According to Deep Tide TechFlow, on January 8, former Deputy Governor of the Bank of China, Wang Yongli, published an article in (China Foreign Exchange) issue No. 1 of 2025 (Rationally Viewing Trump's New Bitcoin Policy), in which he pointed out that Bitcoin closely mimics gold at the 'currency' level, which is why it is referred to as 'digital gold.' However, Bitcoin is purely a chain-based digital asset, not a natural physical asset. Its value depends on the development space of its application scenarios and the faith and investment of people. Bitcoin can be divided into tiny units of one hundred millionth, providing greater payment flexibility, but it does not have real gold backing and does not belong to the strict definition of 'paper gold.' Once trust is lost, it can become worthless, with risks far exceeding those of gold.
Moreover, Trump's new policy on Bitcoin is difficult to implement. First, the United States faces significant challenges in adopting a new Bitcoin framework. The development of quantum computing technology will also pose major risks to the security of cryptocurrencies like Bitcoin. Secondly, the so-called national strategic reserve of Bitcoin, whether it is the government's (fiscal) strategic reserve or the Federal Reserve's (central bank) strategic reserve in terms of the US dollar, carries risks and uncertainties. Replacing gold reserves with Bitcoin reserves is unlikely to have a significant positive impact on the US dollar and will be hard to use for repaying government debt. Furthermore, Trump's new policy on Bitcoin contradicts his stance on strengthening the US dollar as a global key currency.
Therefore, Bitcoin can only serve as a new type of tradable wealth or digital asset; it is difficult to become a true currency and cannot replace sovereign currencies. There is still considerable doubt about whether it can replace gold as a national strategic reserve. The international community should approach Trump's new Bitcoin policy calmly and objectively, rather than blindly following the trend.