Topic: China’s digital yuan could replace bitcoin & end US dollar hegemony - page 4. (Read 1505 times)

This tactic may fall flat and prove counterproductive

For example, if they are selling something and there are many other sellers of that item in the world, they may see buyers turn away from them, especially if they start coming down hard on everyone over this requirement. Indeed, if they are deliberately underselling other suppliers and vendors, then there would be a certain incentive to use their digital currency for international trade (as no one wants to pay premiums for using the American dollar). But they are already underselling the whole world anyway

The fact is, China wants to lead the world. Some of you guys might not understand what China is doing right now, saying that there's no way it would replace USD or BTC ( I believe so, but it's not impossible.)

Is the timing is perfectly placed? Just yesterday I read an article regarding China on using Digital currency for international transactions. With this they can forcefully make a country digital just because they say so, for example this product "X" will only be available for digital currency transaction that means ones country must have deal with it. And in that way they will simply win the cryptocurrency race among several countries, not only that, they also easily sell it to you with their products. This is what I think would happen.

Talking about money means talking about greasing the economy both for fiat money and digital money. Digital Yuan may be mighty in China but China is part of the global economy so it must follow the rules of the global world.

I consider this digital Yuan publishing as part of China's grand plan for the mastery of renewable energy sources as a support for technology in the future. China's move to publish digital Yuan will stimulate a global reaction to rival China. This massive reaction will accelerate China in achieving its national interest in energy self-sufficiency and create a global dependence on renewable energy sources created by China.

Why? CNH exists because of the restrictions of foreign participation in the onshore CNY market. China established the CNH markets as a tool for internationalization of the RMB. Without them, there would be much less interest in it as a reserve currency, or for use in international settlement.

If China actually wants to end dollar hegemony, they will ease restrictions on offshore currency markets.

Right! I would like to presume its an experiment to dominate the crypto space, leveraging its mighty economy to achieve this goal.

In fact, I've seen news after news on this plan via social media channels that I think they are conditioning the minds of the people on how great this initiative could be and often exaggerating its supposed to be "impact" on major crypto like BTC together with the fiat U.S. dollar. So lets see what will happen next.

It can't replace bitcoin, it could just help bitcoin and that's about it. Think about it this way, bitcoin was created against fiat, and I know digital yuan is not really a fiat but its a fiat pegged crypto currency, which means it is not going to be fully independent at all, which means right now USDT is used the same way digital yuan will be used even if that is made by the government.

What will happen is simply just some people who will use digital yuan created by the government as USDT and just keep their money there when they are not trading, and go back to crypto easily whenever they want to trade. Literally the exact same way they use usdt for. But, I can assure you it could have affects on crypto like removing dollars as the thing we all calculate bitcoin based on, it could take over and make bitcoin pegged to yuan prices more often.

It is as simple as that, anyone that thinks this digital currency has any chance of replacing bitcoin simply is not aware of why people use bitcoin to begin with, if governments actually wanted to compete with bitcoin they could do it easily by just creating an official clone of bitcoin they could not manipulate, it was decentralized, open source, pseudonymous and it could not be printed at will, but they will never do it, they obtain too many benefits with their fiat currencies and they are not letting them go without a fight, this digital yuan not only does not have any potential to replace bitcoin I doubt it has any potential to replace the dollar either.

First CNH might go away

CNY? I don't believe so

China doesn´t have to worry about bipartisan interference or an old schoool mindset that is just blocking everything. If the party says so, it is so. And they adopted the blockchain technology early on and this is their chance to fight the Dollar electronically- The US are behind and stuck in their own debt mud and the current election preparations. Europe is just dwelling in its past glory and will fail miserably in the decades to come (if they don´t change fast)

And we will see China hegemony, we already can see it. It will be much worse, guys

Digital currency doesn't change the fact that people don't trust the Chinese government. They regularly devalue the yuan anytime there is demand for it. Their export-heavy economic model favors a weak currency, which makes for a poor store of value vs. the USD.

The Chinese government is already warning its citizens that they are not too keen on non-cash, including digital means of payment, and also indicates a significant role in the state of the use of cash. Therefore, China is not going to give up cash in the foreseeable future.
China's digital yuan is a stable currency, and therefore it will compete primarily with stable state coins, as well as private and commercial stable coins. The digital yuan should not have a noticeable effect on bitcoin and the dollar. At the same time, I think that the digital yuan will strengthen China’s financial position on the world stage.

Digital Yuan isn't going to replace BTC, BTC is just too global for it to be replaced by a digital fiat. Its however interesting to see how China might rise because of their DCEP. Other countries may not pledge to support China but countries my be forced to use Digital yuan if China would ask any country that will import products from them to use digital yuan and its always that way because that is how it works,

We don't know that

If they were, why are they keeping over 1T dollars of US national debt? It kinda makes no sense if we proceed with this assumption, especially when the US is the biggest trading partner of China (with the EU coming second). Basically, it means if the American economy sinks, the Chinese economy will follow. So how can we tell that China is really against the US economy?


The digital yuan can only help the local economy if it gets adopted by other countries around the world (like the dollar). Otherwise, its benefits will be tiny, if any, compared to what they already have. Money doesn't produce anything on its own cause it only facilitates production

This is where the premise of the whole article is and I doubt this will even happen. Remember how popular Libra was and how quickly a lot of countries have banned/denied it even before it will be launched? The same thing will happen to China's digital Yuan, if you think about it countries like Japan, Germany, US, and U.K are all blaming China because of the pandemic I doubt that they will even be on board when this cryptocurrency will launch especially now that their diplomatical skills are very bad as of the moment.

Article is short, without any strong arguments...one quotation from this article proves that:
"It’s very possible that other countries adopt the China framework.."
Why is that possible, which countries will adopt it? North Korea and Taiwan? Why would they do that? Will they be forced to that, or they will have some huge benefits from that? Too many questions, and this article doesn't provide any answer!

What is the most interesting for me is to read comments under some article. I do that with articles I like, I wish to see what other people think, and here in comment section under the article one guy have a nice observation:
" HoochDawg
Dachaguy
20 hours ago

America signed it's currencies death certificate the moment it used it as a weapon. China will use theirs as a different kind of weapon, we've seen them do it already. When Chinese exports became too pricy, the yuan was printed and brought the value down. China will keep the worlds manufacturing in their country via this type of manipulation and it simply wont be profitable for an industrial base to develop anywhere else. This too is a type of weaponization and anyone who really wants a free market needs to call for an end to all fiat currencies."

I can understand about what kind of war he talks about! It's a war last for years, and I don't see any end of that war in near future!

Which leads me to think how happy I am for having crypto around. People around the world should throw dollars, euros, yuans, and their digital versions. We should accept crypto, decentralized crypto and to work for us, not for governments and banks. and to put behind all their wars!

This is indeed the case. If you look at how the government devalues the yuan, then no one will hold their capital in the digital yuan, because it will still be the same yuan. And America will not be a bystander, already now the Democrats are preparing to introduce a bill on the release of the "digital dollar": https://assets.documentcloud.org/documents/6817441/House-Democrats-Counterproposal-For-Stimulus.pdf

Chinese government are powerful and they can do anything with its manpower, they are the largest population here on Earth. There's nothing impossible about them achieving something when it comes to money, and it will surely includes the cryptocurrency. But it is true that they want to eliminate bitcoin and implement the use of their digital yuan in many transactions.

They also want digital yuan to circulate in the market and become adopted by its community, by that it will surely make it grow their economy compared to other country.

But I believe that there's something more that a bitcoin can do to a government's economy, especially if we are knowledgeable about its benefits to everyone of us. Replacing bitcoin is really a very bad decision for China. It underestimated the ability of bitcoin when it comes to a digital currency.

That's right, when it comes to the money, China is really a good manipulator of their economy, you can see it on how they handled their economy during this pandemic. The virus originated from them but still their stock market and economy is stable and not experiencing a downward movement.

We all know that China is really against the US economy, and they really want to create their own cryptocurrency where their country only can benefit of. Chinese people are business-minded that's why there mindset is about making their money grow and for them, Money is the most essential thing here on Earth.

There's really a possibility that they can change bitcoin into a digital yuan that they want to implement in their economy.

I honestly don't see much different between the new DCEP and the "traditional" Alipay/WeChat digital fiat, maybe the only thing is with the DCEP the database will be totally centrally controlled by the PBOC. In other words, China's new "digital yuan" will be a more centralized fiat that will give the party more control/transparency over taxation and capital flows. I have no doubt that the DCEP is part of a wider strategy (along with 5G like some have mentioned) to stake China's hegemony on global currency marketshare and informational control, starting with the financially weak Belt & Road countries. But anyway, at the moment I don't see much advantage compared to existing fiat, and I cannot see anyone in their right mind picking the Chinese DCEP as a reserve currency over the USD.

No way in hell this will replace bitcoin though  Bitcoin is exactly the counter measure to these centralized fiats. The more centralized these digital fiats become, the less willing will the rich be holding them.