\"Bitcoin does not have the fundamental attributes needed to be a currency as it is a string of code generated by complex algorithms...But I do not deny that virtual currencies have technical value and are a type of asset,\" he said. <\/p>\n
His comments come after the Chinese central bank increased scrutiny of the country's bitcoin exchanges earlier this year, a move that prompted the companies to stop margin lending, introduced trading fees and issue rules to rein in users. <\/p>\n
Many governments around the world are still mulling how to regulate and classify bitcoin, whose value surged in June to hit a record just shy of $3,000. China has classified it as a \"virtual good\". <\/p>\n
Squaring in on bitcoin, Sheng said expectations that bitcoin supply would be capped in the year 2140 would make it difficult for it to become a medium of exchange that could meet modern economic development needs as money supply should be related to economic needs. <\/p>\n
He also said that Chinese monetary authorities should study issuing a central bank virtual currency that it could regulate and run properly. <\/p>\n
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\nBitcoin can be an asset but not a currency, says China central bank adviser - CNBC<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"