Bitcoin: What China Has Just Admitted About Satoshi Nakamoto

A surprising statement from a senior official at the People’s Bank of China (PBoC) reignites the debate over the intellectual legitimacy of Bitcoin and its mysterious creator, Satoshi Nakamoto.

An unexpected tribute from China

Lu Lei, vice-governor of the People’s Bank of China, surprised many in his book published in 2021 by placing Satoshi Nakamoto, the anonymous creator of Bitcoin, on the same level as Robert Mundell, Nobel laureate in economics.

“In the field of forecasting and the practice of monetary economics, there are two individuals who deserve great respect: Robert Mundell, who has recently passed away, and Satoshi Nakamoto, who remains unknown,” wrote the senior Chinese official.

This exceptional recognition from one of the highest monetary officials in China marks a turning point in the institutional perception of Bitcoin.

Two monetary visions with different destinies

Lu Lei’s analysis highlights the contrasting paths of these two monetary innovators. Mundell, despite his significant theoretical contribution with the euro and his vision of a unified global monetary system centered around the dollar, did not see his ambitions fully realized.

As for Satoshi Nakamoto’s Bitcoin, it has gradually transformed into “an extremely expensive digital asset, increasingly detached from the circulating currency“, according to the vice-governor.

This recognition by the PBoC holds particular significance as the institution develops its own digital currency. It demonstrates that central banks, rather than rejecting innovations like Bitcoin, are seeking to learn from them for their future evolution.

Although Satoshi Nakamoto cannot receive the Nobel Prize due to his anonymity, this validation from a major monetary authority constitutes a significant form of institutional recognition of his contribution to modern monetary economics.