Bitcoin Isn’t In The Crosshairs Of Digital Yuan But The US Dollar Is
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There have been many controversies surrounding China this year. The first being the notorious coronavirus but in terms of the crypto space, the central-bank digital currency is a big concern for the western world. Many people in America in higher government are seemingly sweating at the thought of China creating its own decentralised currency. And according to one expert, there is a reason for them sweating over it…
Apparently, this digital Yuan is going to rival the United States dollar rather than bitcoin itself.
Matthew Graham is a veteran investment banker in China and the chief executive officer of the Beijing-based Sino Global Capital, he recently analysed what is known so far about the upcoming digital currency and argue that the government in China sees new technologies as an opportunity to chip away at the power the dollar has over the world.
Speaking earlier this week, Graham said that even though it is a difficult time for China to internationalise the renminbi…
“Swift, CHIPS, Fedwire [...] they’re antiquated, they're expensive, they're slow. It's 2020 and we have transactions that take three days to clear and that are far more expensive than they should be. All of these technologies that underpin much of the USD-centric global economy are really showing their age. So that's a big opportunity [for China].”
This digital currency won’t be the same as it won’t live on public blockchain such as Bitcoin does. Instead, it will be issued by the People's Bank of China and with rain will remain under the central bank's full control and authority. To this end, Graham made it very clear that if they are looking at this currency from a blockchain framework, they are going to have a tough time understanding what it is and why it is so important.