China Against Crypto? Why the Digital Yuan risks the flop

27 September 20213 years ago babelfish

"The government will only steadfastly rampage on virtual currency speculation, related financial activities and misconduct in order to safeguard people's property and maintain economic, financial and social order." This sentence was part of Beijing's definitive "Declaration" of war on Bitcoin and other virtual currencies.

This statement risks turning anyone who owns or operates virtual currencies into potential criminals. But Virtual Currency is also the freedom to manage your payments and your wealth independently from the Central Banks and avoiding becoming a government puppet.

This is what is at stake: on the one hand the Central Bank of China with its Digital Yuan which will allow it to completely control the economic life of the country, as if it commands puppets, and which wants to use this system to become the leader of the economy. and money, beating the US and burying the dollar.

But the free market has already created parallel systems that lay outside of Beijing's rule. Bitcoin is one. Ethereum another. So I'm stablecoin. Such systems are built to meet market demand for digital versions of an existing FIAT currency, such as the US dollar. More than 98% of Global StableCoin's $ 128bll is linked to the US dollar. Even more impressive, the US Dollar StableCoin's annual transaction revenue is over $ 100TRLN. It is a surprising success of Blockchain technology applied by the private sector at scale. There is no such demand for the digital yuan – the largest private CNY stable is less than $ 5mm (see "" I'm not excited at all ": China's digital yuan is turned into a giant flop")

China and the United States are on different positions: on the one hand, China, which wants to control everything with its own Yuan, its own CBDC, the programmable currency of the central bank. On the other, the USA that admits BTC and other virtual currencies, while trying to control them. At present, the USA is in advantage because freedom always wins. The Digital Yuan, due to its controllability, is not appreciated even by Chinese citizens and will only be applicable by force.

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The article China against crypto? Why the Digital Yuan risks the flop comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-cina-contro-le-cripto-perche-il-digital-yuan-rischia-il-flop/ on Mon, 27 Sep 2021 06:00:32 +0000.