Will China’s CBDC Thrive During Crisis?

  • Will China’s CBDC Thrive During Crisis?

    Coronavirus. It’s probably a word that you’re getting sick of hearing about right now but it’s a big reality for many people all around the world.

    As it spreads thoroughly all over the world, economies are collapsing, markets are crashing and people are growing more concerned by the day. Many people have been looking towards cryptocurrency as a potential Safehaven. With bitcoin being over a decade old, many people are questioning whether this ongoing pandemic could see the industry pushed into the forefront.

    Raoul Pal, founder and investor of Real Vision has said that this could be the case.

    Many developments are going on throughout the world for many governments as they develop their own central-bank digital currency. In China, this is going seemingly well however the biggest issue and obstacle is the dollar. The dollar is a dominant currency, one of the biggest in the world. This makes it a big threat for them when it comes to finances as it gives the United States significant power over them.

    Pal has said the following on the topic:

    “Two militaries are unlikely to go to a direct conflict but financial conflict, sure, and the US holds that trump card. And Russia has proven this over time and has made it very clear that the world has to move away from this. Obviously, it is not in the US’s interest, but the US also can’t separate much from the dollar. So, it’s a really complicated world. I think China is very much so trying to move this forward to something different.”

    Rumours recently serviced following a screenshot circulating the Internet of someone using an online wallet and testing China as its central bank digital currency. The screenshot suggests that the digital Yuan project is going into its final phase.

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