Professor Hu Jie of Shanghai Gao Jin: At present, no virtual currency can replace fiat currency

On the evening of February 27, the third lesson of Babbitt Industry Orientation Class continued. During the live broadcast, Hu Jie, a professor of practice at the Shanghai Advanced Institute of Finance, said that the core requirement for becoming a mainstream currency is stable currency value, that is, the issuance volume matches the economic growth. In this regard, currently no virtual currency can replace fiat currency. The issue of currency rights is not a fundamental obstacle, as many countries recognize the currency status of Bitcoin. The key reason is that the problem of matching the virtual currency with the economic growth has not yet been solved. The other reason is that anonymity harms taxation and anti-money laundering. He suggested that the supervisory authorities do not need to prohibit virtual currency from entering circulation as a supplementary currency, and only need to analogize it as "foreign currency" management, such as focusing on anti-money laundering.