The New York Times paved the way with an almost complacent article about the first currency of its kind: the very dystopian eCNY Chinese, aka “cryptoyuan” (Hahaha). Here is a taste of the world after …
“China is leading the way with its national digital currency”
This is the title of the New York Times article which insists from the opening hat on the fact ” that no other great power is so far advanced “. Knowing the author and his book Digital gold, it is quite possible that his article was disguised by its editor in order to paint the yuan in a bright light. But whatever, the content of the article remains very interesting.
The first lines put the experience ofAnnabelle huang who, luckily, won 200 digital yuan in a lottery:
” After registering for the lottery through the WeChat social network app, Ms. Huand, 28, a business strategist, received an envelope of 200 digital yuan (200 eCNY, or about $ 30). To spend them, she goes to a convenience store to buy some nuts and yogurt by handing out a QR code from her bank app. “
Reaction of the person concerned: “ the way to pay is very similar to other payment apps », Conceding however that the process was not as smooth.
Let us retain from this little introduction that the digital yuan, a priori, does not seem to bypass private banks. Indeed, it is said that the transaction is carried out via the application of his bank. And not through a central bank app. But since we are told that the payment is not as “fluid”, we imagine that it is indeed two separate currencies.
The question being: for how long? How long before the Chinese central bank absorbs all the private banks and puts in place the vision of Jack Ma. That is to say a system where an “IA” passes all the private data to the mill to find itself good citizens worthy of borrowing …
A self-destructing currency …
Here is another very interesting passage:
” While bitcoin was designed to be decentralized, so that no one could control it, digital currencies created by central banks allow governments to tighten their financial grip. These currencies can expire and disappear if they are not spent by a certain date. They can also make life easier for governments wishing to track financial transactions in order to prohibit tax evasion or cut funding to dissidents. “
Things are clearing up… The goal of the maneuver is to do away with banking secrecy and reveal our purchasing history. The icing on the cake, it will no longer be allowed to save since the money will have a “expiration date“… It would be borderline acceptable if the digital yuan were distributed for free. But who tells us that this programmed destruction of money will not end up affecting every penny in circulation? Let’s not be naive.
Thus, not content with creating a hyper-consumer society absolutely incompatible with climate protection, it is also about controlling the way we spend our money via the self-censorship generated by knowing that we are being watched and noted..
In addition, all of this obviously suggests that the next step will be the end of cash in order to leave no escape from what one could ultimately call “negative rates” on savings.
“It’s more than just money”
Said Yaya Fanusie, member of the think tank Center for a New American Security, in a recent paper arguing that the digital yuan will make it possible to create data collection tools in order to better manage the economy.
We can read further:
” This CBDC system, which the Chinese government calls Digital Currency / Electronic Payment (DCEP), will likely allow the Chinese Communist Party to strengthen its digital authoritarianism domestically, and export its influence and standards abroad. “
This last sentence echoes another article in China Finance, the gazette of the Chinese central bank:
” The right to create and control digital currencies will become a new area of confrontation between sovereign states. “Pub
We are talking here about the ability to trade directly between countries bypassing the SWIFT network which currently hubs all international transactions. The very one the United States is using to prevent Iran from selling its oil to China.
The Middle Kingdom dreams of securing the same exorbitant privilege that Uncle Sam enjoys with the dollar which, let us remember, is the only currency that Saudi Arabia accepts in payment for its black gold.
That being said, probably the Iran of the Ayatollahs is not particularly attracted to Beijing totalitarianism. Let us also bet that the country does not envy the fate of Saudi Arabia and its subjugation to the US empire.
In any case, this is strongly suggested by the think tank. Center for Strategic Studies who just advised the Iranian government to mine bitcoin ” to circumvent American sanctionss ”.
Or is it a matter of signaling to the Chinese that its oil will soon be sold in bitcoin? …
Bitcoin is a bulwark against totalitarianism and war
“He gets carried away,” you might say. Not at all. These are the reasons, and not Elon Musk’s tweets, that make bitcoin appreciate more than 230% per year on average.
A gang of enlightenment within the Chinese party would like to create armies of clones with behaviors guaranteed by mass surveillance and “Social Credit” – a score given to every citizen who, if too low, freezes his bank account.
Bitcoin is a universal currency allowing you to escape from this open-air prison. To save themselves from this dismal apartheid 2.0 crowned with facial recognition Cyclops by which a binary / fascist AI scans to promote its fellows.
And the war we said. Yes, since bitcoin is a stateless currency, it does not offer exorbitant privileges to any particular nation. It is the solution to the problem of whether the energy resources of the Middle East – without which our modern civilization simply would not exist – absolutely must be sold in petrodollar, petroeuro or petroyuan.
The Americans will never agree to hand over their exorbitant privilege to the Chinese. On the other hand, it is conceivable that Uncle Sam agrees to play on a level playing field. And this is where bitcoin, a currency controlled by no one, comes in. Forget the IMF’s Special Drawing Rights …
So, March 22?
Now that we know the stakes, the question is what our three bankers are going to do.
The president of BUBA has recently recalled that “the Eurosystem is clearly opposed to the end of cash“. Same opinion for Agustin Carsten according to his last interview dated February 26. As for Powell, good luck in withdrawing their precious dollars from the Americans. The chances that the three cronies decide to launch a “Euro / Dollar Digital” are therefore probably slim..
Nonetheless, an interview dated March 03 from Weidmann vaguely seems to leave the door open to means of payment linked to our new European health pass, which could take the form of a health pass. Who knows…
After joking about the poor logistics German concerning the distribution of the vaccine, Weidmann said “be of the opinion that a rapid vaccination campaign is the key to reopening the economy“. This position is suspicious to say the least for a central banker who should not be involved in politics.
All that being said, if it comes to announcing on March 22 a digital Euro / Dollar used only by central banks in order to prevent China from emancipating itself from the SWIFT network, they do well.
Follow this BIS Innovation Forum closely which will be spread over three days and in which a host of central bankers will be present.Pub
You will not regret reading this other article written by a French journalist based in China who tells the dystopia of the sanitary pass:
Chinese society has been sucked into mass surveillance. Let’s be careful with this sanitary pass …