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

China will never really be a world power. They will continue to be richer and richer, they will continue to make so much money that they will be richer than anyone else, hell they could get rich just like bitcoin versus other cryptos, china could be richer than all other nations in the world combined. Yet no matter how rich they get, because of their political situation nobody will care about their power, what are they going to do? Do sanctions? Stop trading with a nation? That will destroy all of their money and income, hence they need other nations. And try to threaten a big nation?

China will face trade wars with bunch of huge and a ton of smaller nations because of it. China has zero power unless they fix their political situation, no matter how rich they get.

In fact, it is not possible that China’s digital yuan could replace bitcoin & end US dollar hegemony. Because even though China has emerged as a world power and is economically strong, China still has full hostile relations with many countries in the world. Moreover, the global recognition of Bitcoin as a unique decentralized currency is not possible in the case of China's digital currency, so people around the world cannot trust it. So I don't think so China’s digital yuan could replace bitcoin & end US dollar hegemony.

Chinese economy is like an inflated balloon. Citizens are being forced to invest in over-priced assets, as they have no other option available. Also, this is one of the reasons why China is having the highest amount of capital outflow in the world. Look at the stocks that are listed in the Shanghai Stock Exchange. The P/E ratio is much higher than what we have in other exchanges. The same is the case with the Chinese real estate market.

Where did you find in the article that China uses bitcoin as the primary payment currency?! On the contrary, the Chinese political and financial authorities consistently and methodically oppose this, and the introduction of the digital yuan fits into this strategy. And in General, it is hard to believe that any economically significant country has introduced bitcoin or some alternative coins as the primary payment currency, because this means the capitulation of the state in the field of credit and monetary policy.

Even though China is one of the most powerful country in the world. They can  make digital Yuan replace Bitcoin and US dollar. Because Yuan is not as popular as Bitcoin. And I think only Chinese will use digital Yuan.

How bro? This will lead to the collapse of the Chinese economy soon!
Look in countries around the world, are there any countries that accept Bitcoin as the primary payment currency? The answer is: NOPE!
If China uses Bitcoin, it means that they will not be able to trade with the surrounding countries because the surrounding countries do not accept Bitcoin.
This will inevitably make China's economy go down and even suffer an economic crisis.

yes that seems to be an issue, because to be able to replace bitcoin and end the dollar seems to take time and is very complicated. it is unlikely that the USD will allow the yuan to dominate them either. so it's a high-scale complexity

Nah I don't think so. There's reason why US dollars used literally in every corner of the world you know. I know china is releasing Digital yuan or whatever it is but don't you realize that we already have stablecoins which backed up by USDT? Although it's not from the US directly but it's like USD is already have its own digital form so why bother with other currency? though I hope this gonna bring up some competition which will be beneficial for us as users.

that is also true. of course they are powerful. it may really be hard to see them fail when we all have American dream. but things are very different this time. the changes in behaviour and social media information. there is never been a crucial time for US to struggle for power but this time. it's the fact we all need to face.

there is no need for war now. we are all civilized already due to social media. its where the fight is.

There is no power that could overthrow US dollar hegemony, not China not digital yuan, and not bitcoin. The power of dollar doesn't come from the value of it itself, it comes from the value of USA has all over the world. They are a very rich country and they are so powerful that, last time they were going into a recession they literally declared war on a nation filled with oil and dollars and just took everything from them.

So, even though you may dislike USA with all the rights if you want to, there is no way that you could ever hope that they will be irrelevant, they will always be this huge world power that nobody can take down and that will always give dollar power, even with printing 4 trillion dollars which is insane to think about really, they are still powerful without a doubt.

Dollar appear all around the world. No matter how strong digital yuan can be, it does not have enough reputation to make dollar disappear. Who will use digital Yuan? Only Chinese use this currency and they are forced to do it. Dollar, on the other hand, is a symbol of power and stability while bitcoin is a symbol of freedom and decentralization

the article didn't really say they are trying to replace bitcoin but it's speculated to replace paper money and their digital renminbi will likely be used to dominate the economy in global finance. its gonna be hard to achieve this but if Iran and the rest of the countries that are part of China's Silkroad, it may just be easy for the Chinese to take over.  US is seeing the initiative to be a threat actually this is why the trade war started.

I don't think cryptocurrencies issued by governments can never replace Bitcoin, and those who think otherwise should understand that there is a bit of a lack of information. They made evaluations on a different possibility in the content of the subject, but there will be no such situation, it is necessary to think universally.

yes, the difference is very real. No matter how hard China wants digital yuan to replace BTC, it seems like something very far from the reality can happen. BTC fans want BTC because it is basically decentralized. How can digital yuan be able to compete with BTC and even replace BTC if it has been managed by the country's central bank? Even those who don't go to school know that the government is just like collecting taxes from its people and making every line of people's needs tucked into fees that must be paid to the government.

There exists no digital central bank cryptocurrency that has the capacity to replace BTC. The reasoning is very simple - because bitcoin is fundamentally decentralized and central bank issued cryptos are by definition, centralized. So these two classes of cryptos are simply not substitutable.

In terms of the being USD being the only reserve currency, it is entirely possible and probable.

And this sort of transition is already underway regardless of whether or not a dedicated cryptocurrency is created - CNY is already trending toward reserve currency status by the day. Even Ray Dalio has spoken about this at length.

"A toilet in the form of a hole in the ground in the middle of the city center can replace your personal home toilet and put an end to the hegemony of personal hygiene" - it sounds like this, and the feeling that it is written just from the first place.
If you understand the General concept of cryptocurrencies at least a little, then you should still understand that any state-owned cryptocurrency is the only an interpretation of Fiat money based on crypto technologies. Do you think there will be the anonymity that you love so much? Or other things?
Well, this is ridiculous, honestly. Who wrote this article? 10iq-author?

CBDC will be used as an alternative for fiat currency. It will never replace any of the cryptocurrencies (including the stablecoins such as USDT or PAXUSD). And taking in to account the fact that CNY is one of the manipulated fiat currencies, I am skeptical that it will ever get good acceptance. It may be used for international trade involving China, but I don't think that it will be accepted elsewhere.

I agree CBDC is being used as an alternative way of fiat payment central banks around the world are considering launching some form of digital currency uruguay's central bank has already launched a digital currency under a pilot project called CBDC. The study is aimed at examining the impact of such initiatives on economic stability, banking transactions and business in the non banking financial sector attempts are also being made to gauge how helpful the digital monetary system will be in economic policy making.

he doesn't understand what CBDC is. There's no reason for CBDC like digital yuan to replace the bitcoin and all of centralized coin. digital yuan will be the same thing as stable coin but when the crypto users can see another opportunity and it may add the more option for bitcoin to use it as a way to get the new money.
CBDC being used as an alternative way for the fiat payment. It will never replace bitcoin.

Most of the time those that propose that a cryptocurrency that is issued by a government is going to replace bitcoin do not really know what they're talking about, I have no doubts that there are people out there that will use those cryptocurrencies and that they are going to accept whatever monitor and control measures that comes with those coins, but people like us are never going to touch those coins and as long as we do that then bitcoin is going to remain valuable and it is never going to be replaced.

Also I think that people are realizing the amount of control they are giving to governments and to private companies over their lives and some may decide to join us instead of giving up completely and giving governments complete control over their money and what they can do with it.

I agree with you, for bitcoins to be replaced by the digital yuan it would take a lot of effort from many countries around the world. China alone can't end the USD hegemony or the spread of bitcoins. In my opinion the reservation towards Chinese monetary policies are still very high in western countries. As long as the Yuan is not a freely traded currency, most investors from Europe or North America would not invest in the digital Yuan.

The digital yuan is primarily beneficial for the economy of China itself.  It will partially displace the cash yuan and this will reduce the cost of their issuance and maintenance.  It will also dramatically increase the efficiency of non-cash payment methods.  Most likely, it will be primarily used on the territory of China itself and to pay for trade deals with partners.  The digital yuan will increase its influence in the Asia-Pacific region, but it cannot replace the dollar, nor can it have a significant impact on bitcoin.  It will be an ordinary stablecoin of a large state.

In many ways, China is cheating on the US strategy, especially dynamic infrastructure development first before building static infrastructure. The US strategy has also been imitated by China to extract natural and human resources in Africa. The only difference is that China is binding on long-term infrastructure projects so that a country cannot escape debt bondage to China.

China strictly follows the grand plan and creates a system so that China can shape and destroy according to the strategy used. Starting from the OBOR program, development programs in Africa, the diaspora to plans for energy self-sufficiency by dominating batteries. In addition, China's military step in the southern sea is to increase its bargaining power by controlling the rare earth metals needed in modern weapons technology.

At present China is not considered an imitation country anymore, they are better known as modifiers and countries full of innovation. China has begun to dominate trade and finance shifts the US. will China be free from energy dependence after this? As for the dominance of currency and military power, I think the gap is still very large with the US.

I don't see how feasible this would ever be you know. How can a centralized digital coin replace bitcoin? China's digital currency is likely going to be used mostly in its country and other countries close to it hence i don't see the  connection and how it can even go to the extent of dominating over the American dollar.

China had great share in bitcoin market and when ICOs were banned in China the Chinese people sold all their altcoins and converted their money into fiat. At that crypto market face a big decrease in the volume. We all know that China is country with big economy. So we can say that it could happen because nothing is possible but it will take a long time, bitcoin is decentralised so people from the world has More trust on bitcoin than other currencies. It can compete with dollar easily!

Also there are always trust issues with the Chinese government, now US is against China and is also directing other countries against China. So there will be an acceptibility issue of digital Yuan outside of China but in their own country this will surely replace paper money as already Chinese people are using digital payment methods than any other country in the world and that too just with their own domestic payment processors. I also agree with you that it will not replace US dollar not even in the long run.

The US has become a strong country and it is proven that although the Dollar is not the highest value currency, the Dollar is used as a benchmark for world money exchange

I am not a fortune-teller who can read the future, but the potential of the yuan to replace the dollar's dominance as well as replacing Bitcoin is zero percent

Since I was born, I have heard that technology will replace the dollar, but all of it did not work. Replacing the dollar means defeating the United States and losing it to war, which can only happen after a clash with the United States or a third world war.
Commercial battles or new discoveries will not change the balance of power.
Dollar will be dollar and bitcoin will be bitcoin.

All in all, I agree with everything you have said

However, the wily Chinese are known for being extremely cunning and conning. Obviously, they are not going to confront Uncle Sam face to face in the open as that would be a recipe for disaster, at least for the time being. They are more likely to follow the route that the US had been following in the first half of the 20th century, which was to sit on the fence and wait till the dust settled. And then pick up the power from the weak hands of the European superpowers of the time. So, they are going to take small but perfectly calculated steps, probably using other nations as their proxies whenever available and possible until they are ready to deliver a crushing blow to the dominion of the US over the world. The times may have changed, but the power struggles and approaches remain the same

There is no way it could even slow down USDT and you know why? Because USA still is the biggest country in the world when we are talking about power and economy. Definitely china could have manufacturing places but I can guarantee you, if they create any problems for anyone, people could move to other cheaper nations, they could literally change the whole Africa to be an awesome continent as a whole with amount of money China makes from import export business and it would be even cheaper.

So right now, China is not powerful for right reasons, they do not have money for right reasons. "We are superb cheap and we do not care about human life" is not the same power as "we have big guns and quite stressed, do not test us!" type of power. So, USDT will never be tested by any official Chinese digital yuan let alone an official USD stable coin by the government which would be insanely bigger.

Why is it China's policy is the issue its just the currency that has to come up. Other countries will likely agree that Digital Yuan will be a strong reserve after all they are one of the countries with stable economy.  Its just the currency that is to be accepted here not the countries policy to their citizens.  BTC still is not independent because for all we know mining farms are in China and exchanges today are mostly owned by Chinese.

Today, the United States and China are fighting a real economic war, while their governments have completely different approaches to developing their economies and solving financial problems within the country. if the yuan replaces the dollar, it will be a fairly strong replacement. But no country would agree to recognize the yuan as an international currency, since China’s policy does not give peace and the possibility of a serene universal coexistence. Based on this, there should be a real alternative that will be both independent and fully supported by other countries, which means that nothing can resist bitcoin.

We don't know how it is going to function in practice

If it will be hard-capped in the way Bitcoin is or its supply will depend on factors which lie beyond the reach of the Chinese monetary authorities (unlikely but still), such a currency could get traction after all. Otherwise, it will be no more than yet another payment system with a fiat currency as a basis, in this case the Chinese yuan (read, the American dollar hegemony won't be hurt, let alone displaced)

In addition to Chinese citizens, the digital yuan, as before the Fiat yuan, will be used as the reserve currency of other countries. Although the government's decision to devalue the yuan has repeatedly led to such States losing money. This is what will not put the digital yuan on a par with the dollar.

Well, there are various opinions

Aside from that, China’s digital yuan is not their only initiative. They are now planning on starting a regional currency. As per this Cointelegraph article, Chinese powers that be want to challenge the hegemony of the American dollar on the global scale by developing a regional currency. What makes it particularly intriguing is that it is reported to be based on the Chinese yuan, Japanese yen, South Korean won, and Hong Kong dollar, so you can rest assured it will be used for regional payments at the very least if it kicks off for real

Digital yuan will compete the US dollar as the world reserve currency, it's evident. But how could centralized digital currency replace the first crypto by the market cap? I don't think it's ever possible.

I do not agree that digital yuan can replace bitcoin and US Dollar, because there are no benefits that can be obtained by using digital yuan.
I am sure that only Chinese citizens will be using the digital yuan. Besides, it is not possible for many people to believe in China is a communist
and money-oriented country, after all bitcoin and US Dollar are more trusted by many people than digital yuan.

Why did you only post a link? Can't you give short words about it in order to utter your ideas or opinion? or ever say something about it or only say hello.
In this case, what is the digital Yuan for? It is only for the Chinese right? if it is growing bigger, I think that it will give impact on the Bitcoin and also other cryptocurrencies. however, It must have a limited impact because it is also new. we don't know if 10 years later, what will happen. however, I do believe that BTC price will not be influenced too much by this digital Yuan as long as many more people trust and use BTC for investment, trading, or even payment methods.

A digital currency created by the government of a country that likes to monitor and control everything, including their people? Lol, you’re not serious . I’m sorry man, but that crypto Yuan or whatever it’s being called is going nowhere. It’s just going to be in China, and that’s where it will remain, and I am not interested in making use of it. And do you even think that their citizens likes the way the government is controlling them? Most of them might even stay clear from it and prefer to make use of bitcoin alone due to decentralization kind of reasons.

I am not interested in any government's cryptocurrency as it will kill all the purposes of why I am adopting cryptocurrencies. Instead of doing that, I may to a forest to lead a life like tribes as it seems that must be a better life considering what we are experiencing in lands and with economy of nation and individual wise.

Don't trust russia today. If they listen something about china and digital currency, this not exact(1000%) what they writing after. Sheet Chanel number one !!!

Replace Bitcoin not likely, but replace the dollar perhaps. I'm not sure what chinas balance sheet looks like but its probably better then the US right now. I was thinking about conspiracy theories and china wants to be the top currency replacing the dollar so why not let out a virus contain it in your own country quickly so it doesn't look intentional. Then let the rest of the world get infected damaging the economies of the USA and other developed countries in the hopes that the chinese dollar becomes the top currency. Far fetched maybe but it sounds plausible to me anyway that's my thoughts on the topic.

Obviously, I didn't mean Russian government as your government. I was just speaking generally (read, about any such government), and Moscow's "economic" policies based on purely political reasoning and reckoning just turned up as an illustrative example of what they may eventually lead to if they are not governed by economic interests of the local population. That was basically to show that governments often follow strategies destructive to their own citizens

Anyway, if it gives you peace of mind, I'm from Russia

The creation of digital and it replacing bitcoin and US dollar is far fetch, remember when bitcoin started? The price was so low that there are only a few that bat an eye, the social credit system is a different thing, it tracks and rewards an individual based on their actions in the Orwellian society of China, the digital yuan will be different since it will be used as a form of transaction unlike social credit system which only represents your merit. Speaking of merit, the social credit serves as a control for people to do unwanted things such as crimes, misdemeanor and general unwanted behavior, this system is pretty scary because it clearly states that the government can see your every move and that they can do anything.

Globalists are right to say that they usually want to end the dominance of the US dollar because of their interests but this is not possible at all The US dollar will not run out no matter what currency China exchanges for. Not only China but also other countries like Europe and America feel comfortable to trade in US dollars This war will not last long Even if China replaces the yuan bitcoin it will take a long time for its demand to increase in the market.

I think the battle that is happening right now is more interesting not about the west and the East represented by China and America but also the fight between Globalists and Nationalists that also happened which in fact Globalists formed a coalition with China against the hegemony created by America as the winner of the War.

Globalists want to realize a system of one currency because they assume that with a system of one currency there will be no exploitation by certain parties. They do not even believe in gold, because gold is also a commodity that is traded and is still commonly exploited by many parties. They only believe in algorithm matrices that are considered zero faults.

The globalists assume that the damage that is happening now ranging from environmental damage, economic inequality, hunger is due to cross-interest between countries that ultimately bring damage to the world.

right. Asia and Europe now seem very tense. 9 countries in Europe have just allied themselves together to restrain China's expansion. It seems like this is a big battle between the two economies. I believe this will be a very interesting war and the US will have solutions to the Chinese government's new decision. It is possible that our crypto market will also grow strongly thanks to the fighting of 2 continents.

If I mention Russia in my answer, it does not mean that I am a citizen of Russia. Therefore, do not transfer your negativity to me. I believe this is a very good example of the digital yuan not being able to claim something big because the government is devaluing the yuan.

China does have the ambition to become the ruler of the world. But China is sane enough that its opponent's strength is too integrated and the opponent's flight hours are higher. The fact is that the torch strategy is a printed counterpart so that the dollar enters China and foreign exchange reserves in the form of dollars increase. The Have group is a person who controls the world even more wealth than the FED has, this group is small in number around 3-5% but they control almost 95-97% of world wealth and they use America as a proxy to make their wealth Eternal. Yuan might be able to shift the USD if China defeated America in a military war.

Digital Yuan is only a symbol that China is advancing on the financial side of technology and as a grand plan of accelerating the change in the global pendulum from crude oil to batteries, digital Yuan publishing is not intended to shift the USD or Bitcoin. China still needs USD now, without reserves in the form of USD, China's economic stability is also not maintained. China also needs and prefers a stronger USD even willing to weaken the Yuan exchange rate with the aim of competitive commodity prices and can be absorbed by the international market.

China can print Yuan but cannot print dollars. Therefore, the OBOR program was made to print Yuan but generate dollars. Meanwhile, to reverse the situation so that the Yuan is more ferocious in the future, China will sell its products to Africa and import high-end goods from developed countries. The buyer is king, when demand declines China will be present as a shiny buyer and that's when the Yuanization negotiations can begin.

That's what happens when your government pursues political goals before economic ones

The Chinese have been devaluing their national currency countless number of times in the past, and you didn't exactly need an MBA's degree to foresee such developments and expect more devaluations in the future. Moscow thinks it bought the Chinese support in the international scene but China knows better than that. And who is going to pay? Common folks will be paying, as always

Also China is always against privacy so their new coin won't have any privacy features and will also be watching your every move as they love to track their own people, so except Chinese people using the Digital Yuan no one else be using it in any other country. I don't understand how can Bitcoin be a partner to the Digital Yuan as Bitcoin can't be controlled by any government, it is decentralized which is much better than the former, also after the Covid blunder who can trust China now, not with their money at least.

The digital yuan might replace Bitcoin and the US dollar,but only inside the territory under the jurisdiction of the Chinese government.It's pretty obvious that the Chinese government will force the people and businesses in China to use this digital currency and dump other currencies.I simply can't see this currency getting outside the borders of China and becoming a global currency.
Meanwhile,the authorities in China might gather control over the Bitcoin mining facilities and try to manipulate Bitcoin.Many people say that this is impossible,but the risk remains.

No one knows if china's digital coin will replace bitcoin and i think i could go other way around because china is very controversial nowadays due to the allegations to them that they are the roots of this pandemic. I have seen numbers of coins that were stated that "could" replace bitcoin but all of those really cannot backed it up to take the thrown out of the KING. China's digital coin could be successful in the market but cannot replace bitcoin as top currency in the world.

You're wrong. The Chinese yuan is held by many countries of the world as a reserve. So the Central Bank of Russia in 2018 held as a reserve: yuan-14.4%, dollar-22.6%. But this choice in favor of the yuan only led to losses, because the Chinese government has devalued the yuan several times over the past time. The digital yuan will also be devalued in the same way.

Their neighboring countries will not agree for them to accept Yuan, just check the region where China is bullying its neighbor for territory expansion in the Philippines sea, the US dollar is still irreplaceable and there's no way Yuan can beat Bitcoin, because Bitcoin has a lot of fo supporters than the Dollar and Yuan combine.

See there is a big reason why the people won't be that kind with China's digital currency.
*The Chinese government always keeps track of the users and their activities , therefore privacy will be compromised for sure*
I do not believe that it does have the support to replace Bitcoins and dollars .
See the good thing about Bitcoins is , it's independent and does not depend on any governmental body , so the government can control it externally but internal control will always be with the users and therefore I do believe that any digital currency which is supported by the government will kill the whole purpose of having one.
Independence and Privacy.

An easy question to answer, it is impossible for digital yuan to replace bitcoin and US Dollar. Because the Yuan is not an international currency,
in my opinion no other country is interested in digital Yuan. Although until it is successfully used for digital yuan, chances are that it uses only
Chinese residents. Even in the future all countries will have their own digital currencies, so digital yuan no different from other digital currencies.

Social credit system is scary, thank god I do not live in China, there is a huge difference between Chinese people and other nations in the world, it is weird to live by the rules of just one person, or basically one party, it is really difficult to realize how they are so involved in it that they do not seem to understand how horrible they are living and think that they are doing fine and "long live the party" or whatever.

Chinese digital yuan would get very high too, they will probably collect billions, even tens of billions of dollars from Chinese because that is what the "motherland" wants and people will probably not even question it as well. At the end of the day when you are a dictatorship and you want to do something, you can do it, who could ever hope to stop you at all.

US dollar has been used globally beyond bitcoin nor any other currency including for Chinese. I don't see the possibility of such replacement. The dollar is used in international trade, yaun is not known.

Trust in China, not that there was any in the first place, is heading lower by the day.

Anyone other than the Chinese government staking their future on Chinacoin would be a nutter. I'm sure it'll be extremely powerful but that's power that needs to be kept at arm's length for the health of your own nation.

The idea of your reserves being under their complete control at the press of a button isn't going to be an appetising idea.

And as for the idea of it 'replacing' Bitcoin, that's such a pathetic, literal and mindless idea I can't be bothered to expend the calories to type about it.

In my opinion China has already print out more fiat money for their own daily use for payment as viable option and security and besides that there is no longer reluctant to obstract because of their quaint laws, I think the global economy of China  has been criticized the impact of sound of some traders desire that through the arrival of time before and after there's nothing and a lot of problems result regarding fiat currency, so they also performing to used a different digital currency  for fast payment .

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.

Already read the news in the morning. Hard to know what will happen in the future. However, if China decides to publish the digital Yuan, it will be a great decision for its people. As you can see, China's population is 1,4 billion, and the government does know how to maintain their country. If this currency has many features and advance techs which help people in their life and work, it will easily be adopted and used widely not just in the China but also in other countries.
Yet, we still do not have any information about this digital money. Therefore, just wait and see how China does and acts

Did the world trust CCP more than the US? Nope, and never, as long as CCP still rules China.
Can FIAT replace cryptocurrency? Nope, it's different.

Why do people act like digital currencies are something new? We had them for decades ever since banks started getting connected to the Internet, and later when non-bank payment companies begun to emerge. Just because they don't have blockchain doesn't mean they are any less digital and just because a coin has blockchain doesn't mean it's decentralized or is going to be successful. There's nothing special or revolutionary about digital fiat currencies, and all this talk about digital currency replacing US dollar is just wishful thinking and propaganda. No wonder this shitpost comes from Russia Today.

Well, if it does, the Dollar won´t go down without a fight using all dirty tricks in the process.

I don't think China will totally abandon their fiat money in lieu of its proposed digital yuan for the simple reason that they will lose their ability to print money out of thin air to float their economy.

With digital money, people can easily track it if ever they  try to mint fresh digital assets into circulation so that I don't think China will ever like it, allowing prying eyes on what they are doing behind the curtain. Imho.

Simply the Chinese economy needs to experience its digital currency and so we can know what is the future of this new asset digital. As it is an asset of the Chinese government, it is legal tender that will give it an advantage to grow its popularity among holders. In relation to Bitcoin I see that currency can enter the stablecoins category. I also do not see direct competition to Bitcoin and less that it replaces it.

China is one of the most developed countries in the world and has a huge influence on all aspects of trade and commerce In that case China can replace the digital yuan bitcoin even if it wants to China is far ahead in terms of crypto. The demand for crypto is higher in China than in other countries If China replaces it there could be a lot of improvement for the crypto market They are trying to create something new to update. However in most countries where the US dollar is prevalent many countries may not support the yuan.

what if the country isnt good in business or managing its economy  , does that mean its not possible for them to replace thier own currency by btc or any other crypto ? but even if they didnt transform into digital currencies thier economy can still collapse because thier bad at managing/running on it   .

no they arent going to partner btc with yuan but they are going to replace it by btc   . didnt you liked it ? or you only want to remain yuan but only partner it with btc ?  that still okay so that no currencies will harmed or get vanished   .

Yes us dollar replaced if china want to change it. This is possible because china are good in managing of economy and good almost in businesses. But i think bitcoin is good partner for chinas digital yuan because there are many people's trust the bitcoin in online aspect.

First, the Chinese yuan is a globally accepted currency. It is one of the global reserve currencies.

Second, it is one thing to freely say no to Yuan and it is quite another to be forced to say yes for certain reasons. For one, your country may be heavily indebted to China. And we all know how China is now offering a lot of grants to so many countries around the world, thereby trapping them in its terms.

Third, the huge majority of most countries' citizens are not even aware of what a global reserve currency is.

It might replace xrp, tether,...

But BitCoin is too different to be replaced

I don't think it will be that easy for China to get the grip on most countries given that they are the ones being blamed for spreading the virus around the world.

Russia, NoKor and other communist countries might just support their ally in this takeover, although given that most key countries with huge economies aren't really interested in the idea of Yuan being the main currency around the world, they stick with the USD and strengthen their trade relations to the US. While China is no doubt the biggest when it comes to raw processing output and throughput all over the world, most countries can get along with it and just find someone else to trade with. It's already happening now with US and European companies pulling out their assets on China and transporting their production line within their own countries or regions.

Also, it will take a huge ass turning point for China to overtake USD or even the Euro when it comes to global reserve currency, which isn't happening any time sooner.

You are fantasizing mate ..  how can digital yuan replace Bitcoin and USD while the demand is most likely only Chinese citizens, replacing the USD is impossible, Is president Xin Jinping able to make every oil trade transaction worldwide with Yuan and no longer with the USD??.  if China is able to do that (divert oil transactions around the world with Yuan and no more with USD) then Yuan can replace USD..

Why would people buy the digital currency of a communist state? The hole point of Bitcoins was to be decentralized without the controlling governments affecting the money suppls.  I hardly believe that investors are buying now in a currency of a hands-on regime regime like China - maybe their own population but no one else would be so foolish.

As long as the Yuan is not freely traded - and who can guarantee that except the chinese government - but who would believe that?

I think now with the corona crisis countries are rethinking globalization and the hunt for the lowest production cost around the world. China is only powerful as long as the  world is buying there cheap products. Once the trade stops the global power of china will deminish again.

@Kakmakr no country in their right mind will pledge support for the Chinese Currency, because Yuan is not a globally accepted currency, and even if few countries try to support it their own citizens will protest against it, hence I don’t think any country will choose Yuan over the dollar.

@fabiorem you’re correct because of the corona issue many countries are cutting down trade relations with China, and hence it’s not possible for them to suddenly adopt Yuan, unless they can prove they had no other choice but to adopt it.

Sources:

https://www.cnbc.com/2020/04/21/supply-chains-will-move-away-from-china-after-coronavirus-mark-mobius.html

https://www.bbc.com/news/world-asia-india-52672510

https://www.scmp.com/economy/china-economy/article/3081415/coronavirus-china-faces-fight-hang-foreign-manufacturers-us

Only posting a link without any words, even only a few words? Well, OP. I think that later, you should at least give your own words when posting even it is only sharing news. So here, we can know what is going to discuss and what is your opinion about the news.

1. Your title is exactly the same with the title of the article, it is better to rewrite your own title

2. The title stated about the digital yuan of China that could replace Bitcoin, but in fact, in the article, I didn't find any case stated about replacing the Bitcoin by this digital Yuan.

3. The reasons why they over announce to the media is probably to give big influence to the US dollar. As we know, these two big countries are about to win and they are competing with each other. You know, media can really give big impacts.

4. The main reason for Digital Yuan China
It is stated that actually the digital Yuan is created to replace the paper money. It has been done in 4 cities in that country and it will be implemented readily in 2022.
In this case, I will really believe that it may include some politician utility. Here,

On top of that, many countries are also blaming China for the coronavirus. I cant see them doing a 180 degrees turn to accept China as their new financial master.
Something on Soros plan is not working. Unless, of course, the plan includes military escalation and war.

Well, for that to happen... other countries currently supporting the US Dollar would have to agree to that and pledge their support for the Chinese Yuan or the digital equivalent of it.     China being a communist country with an oppressive government will not count in their favour to get other countries to agree with that.

China are one of the biggest economies in the world currently and this fight would be very interesting to see.  Who would be able to influence other countries to accept their currency as the global reserve currency.     I think a lot of the communist countries might support China and the capitalist countries will still support the US Dollar. 

It will come together with 5G and the orwellian social credit system. I cant see this replacing bitcoin.

https://www.rt.com/business/490489-digital-yuan-challenges-dollar-bitcon/