Former Governor of People's Bank of China Says Crypto Could Become Useful Tool for Economy

Zhou Xiaochuan, the former governor of China's central bank, said that cryptocurrencies could potentially serve the real economy during the Lujiazui Forum 2021 that kicked off in Shanghai on June 10.

However, he noted that it “would take time” for them to become a useful tool for financial development, Yicai Global reports.

Xiaochuan singled out low transaction throughput as one of the main shortcomings. He also describes such issues as decentralization and deregulation as “controversial.”

The retired economist—who’s known as the father of China’s much-talked-about central bank digital currency—said that the digital yuan would push back against dollarization back in October.