Former Vice President of Bank of China: Rationally view Trump's new policy on Bitcoin, do not blindly follow the trend
ChainCatcher News, former vice president of the Bank of China, Wang Yongli, in his article "Rational View on Trump's New Bitcoin Policy" published in the first issue of "China Foreign Exchange" in 2025, pointed out that Bitcoin highly mimics gold at the "currency" level, and is therefore referred to as "digital gold." However, Bitcoin is a purely blockchain-based digital asset, not a natural physical asset. Its value depends on the development space of its application scenarios and the amount of belief and investment from people. Bitcoin can be divided into one hundred million tiny units, 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 will vanish into thin air and become worthless, with risks far greater than those of gold.
Moreover, Trump's new Bitcoin policy is difficult to implement. First, it is challenging for the U.S. to have new Bitcoin. The development of quantum computing technology will also pose significant challenges to the security of Bitcoin and other cryptocurrencies. Second, the so-called national strategic reserves of Bitcoin, whether as government (fiscal) strategic reserves or the Federal Reserve (central bank) as strategic reserves for the U.S. dollar, carry risks and uncertainties. Replacing gold reserves with Bitcoin reserves is unlikely to have any practical benefits for the U.S. dollar and is difficult to use for repaying government debt. Furthermore, Trump's new Bitcoin policy contradicts his stance of strengthening the U.S. dollar as a global key currency.
Therefore, Bitcoin can only be a new type of tradable wealth or digital asset, and it is difficult to become a true currency. It cannot replace sovereign currencies, and whether it can replace gold as a national strategic reserve remains highly questionable. The international community should treat Trump's new Bitcoin policy with calmness and objectivity, and not blindly follow the trend.
