Major event!!! ICBC actually gave a thumbs up to Bitcoin!!!
You heard it right, it was the ICBC of China. They recently issued a report praising the benefits of digital currency. The report said that Bitcoin is like the gold of the digital world, and Ethereum is simply "digital gasoline" that can provide energy for many applications of web3. The report also mentioned that people's imagination is the key to the crazy growth of digital currency types and applications, just as historian Yuval Noah Harari said. Matthew Siegel, the digital asset boss of VanEck, also said that this is simply a "love letter" written by ICBC to Bitcoin and Ethereum.
The report details the different development paths of digital currency. Bitcoin relies on a mathematical consensus mechanism and is as rare as gold. Although its attributes as a currency are a bit weakened, its status as an asset is stable. Ethereum, on the other hand, provides us with a "technical force for a digital future". It uses its own programming language and virtual machine to play a key role in the fields of DeFi and NFT. Although there are some minor security issues, developers are working hard to find solutions, such as the upgrade of Ethereum 2.0.
Stablecoins and central bank digital currencies play a big role in our current financial system. The report said that stablecoins are like a bridge connecting the digital currency market and the real world. They are linked to traditional assets, providing stability to this volatile market, allowing us to trade seamlessly, and can also serve as a reliable value storage tool. They are simply a little helper in our daily financial activities and the gateway for digital currencies to enter the global financial system.
CBDC is a big innovation in the monetary system! The central bank's digital legal currency can make our payment system more efficient, reduce transaction costs, and make monetary policy more effective. Moreover, it can simplify cross-border transactions and allow those who do not have bank accounts to enjoy financial services. However, to develop this CBDC, many factors must be considered, such as privacy, security and regulation. We must ensure that it can be widely adopted, and policymakers, technology developers and regulators must work together to ensure that it is safe, compliant, and protects our privacy.