Abstract : Cryptocurrencies that lack value anchors such as Bitcoin are difficult to become international currencies, but the stable coin is the challenge to the existing currency system.
Mr. Cao Shengxi, the digital assets institute researcher, Ph.D. student at Tsinghua University, published an analysis article "Digital Currency Provides New Directions for the Development of the International Currency System" in the International Financial News.
Cao said in his article that in the digital time, there are three aspects which impede the new sovereign currency from becoming a global currency.
1. The demand for international settlement is no longer concentrated on large players in global trade and finance such as companies and governments.
2. Internet and technology giants companies have surpassed sovereign states and formed their own service networks.
3. The majority of developing countries are more motivated to accept a change in the payment system.
To summarize the factors that affect success and failure of a potential international currency in the digital era, stability is an important factor. Therefore, cryptocurrencies that lack value anchors such as Bitcoin are difficult to become international currencies, but the stable coin is the challenge to the existing currency system.