Taiwanese Central Bank Governor Says Cryptos Need a Trust System To Have Value
Taiwan Governor Yang Chin-Long Said That Cryptocurrencies Aren’t Included in Fiat Currency’s Trust System
Cryptocurrency has been up for discussion throughout the world, discussing the ways that it may or may not hold value. Some governments have even discussed cryptocurrencies as securities, rather than holding monetary worth. However, the governor of Taiwan’s central bank, Yang Chin-long, has said that cryptocurrency does not even rank in the same category as fiat currency in the present trust system.
He pushed this statement even further, saying that fiat currencies have always been supported by trust, which is the only way the system works. If a currency loses trust, then it may as well be nonexistent, in Yang’s opinion. Cryptocurrencies do not have the same foundation, since they are part of a highly volatile industry, and there does not seem to be any kind of punishment for hackers or justice for the victims. Based on the governor’s comments, cryptocurrency cannot be trusted and, thus, cannot equate to the value of fiat currency.
Still, Bitcoin has a lot to catch up on. The current currency in Taiwan alone, which uses the Taiwan New Dollar, has been around for almost 60 years. Before that, the country used the Old Taiwan Dollar for three years, but the Bank of Taiwan has been in charge of the currency for over a century. With Bitcoin still being under a decade old, it has not had as much of an opportunity to work out the problems that it faces, which is much of the cause of the distrust. Right now, the world is facing the first challenger of fiat currency for every country that is accepting of cryptocurrency, which is growing stronger each day.
These statements that the governor has expressed is much more expansive than his comments earlier in the year. In March, he stated that cryptocurrencies had become more of a commodity than anything else but did not shy away from the inclusion of a blockchain payment system for banks. Hopefully, these comments match the current goals of the country, which is trying to create its own regulations and legislation for the operation of crypto platforms. However, anything that the governor says will have a major impact on the framework of the laws.
Consumers should still take note that the opinions and upcoming laws are nowhere near as severe as what China has issued. Nevertheless, one big concern right now is the potential for money laundering, which will undoubtedly come up in discussions over these upcoming laws.