The digital yuan appears to be breaking its shell. China is well on its way to being one of the pioneers in the field of central bank cryptocurrencies, especially among the great economic powers.
Westerners are focusing much more for the moment on the threat that stablecoins pose to their currencies.
Libra does not want the digital yuan and it is mutual!
In a statement released on October 31, 2020, the Chinese President, Xi Jinping, indicated that the China was to participate proactively in the creation of the international regulatory framework on digital currencies.
The document entitled ” Issues on National Medium and Long-Term Social and Economic Strategies Stresses the need to accelerate the digitization of the Chinese economy, its society and its government.
The statement comes days after the announcement of a bill to legalize China’s digital currency and ban all crypto pegged to the yuan.
The process of creating the digital yuan accelerated after the revelation of the project Libra (≋) through Facebook : the initial project positioned Libra as a global stablecoin backed by the fiat currencies of the world’s largest economies, but which excluded the China.
No to stablecoins!
Regulators and international bodies have begun to work on designing a comprehensive legal framework around cryptocurrencies.
The US Department of Justice released a document in October 2020 entitled ” Cryptocurrency: Enforcement Framework In order to ensure that these assets do not threaten the security of the United States.
For their part, global financial institutions such as Bank for International Settlements study the impacts of stablecoins.
The People’s Bank of China recently closed many online gambling sites using stablecoins like the Tether (USDT).
In June 2020, Chinese police froze several bank accounts involved in fiats and crypto laundering activities. Crypto-traders and market makers are said to be under investigation.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Bitcoin (BTC) vs digital yuan: the latter won’t have a hard time skyrocketing its adoption rate given China’s demographics and the country’s dominance in international trade. BTC could benefit from a devaluation of the dollar and the euro, with a decline in dollarization of the global economy, and a Europe now lagging behind China in monetary terms if it is not reactive. What if Satoshi Nakamoto was from the Middle Kingdom?
Litecoin, welcome in the Silver Age