Will the Digital Yuan makes China even more powerful? - page 2.

AndySt

legendary

Activity: 2142

Merit: 1012

Quote from: Xinarae* on October 31, 2020, 07:54:38 AM

China may be a very powerful country during which case the digital yuan will make China stronger and therefore the transaction is predicted to be easier without the medium of banking. A weaker yuan makes Chinese exports more competitive. For this reason if you purchase those products in foreign currency the worth are going to be lower. Weak yuan will make importing goods to China costlier. this may cause inflation to rise and hurt the Chinese economy and put pressure on moneylenders to take a position in other assets.

It's not all that simple Wink

I agree that the banking system can do much more useful things than serve the monetary transactions of citizens than the digital yuan project will directly deal with. But the exclusion of the banking system from this process can have a detrimental effect on the banking system itself, depriving the state of a part of the taxes paid for this. This structural reform will be beneficial in the future, but may have some negative impact now.

bitbunnny

legendary

Activity: 2912

Merit: 1068

WOLF.BET - Provably Fair Crypto Casino

I don't think that the power of China depends on digital Yuan. Yes, it might help but it's definitely not crucial. Further power and wealth of China depends on on its trade and investment in Europe as well as relations with US which we will know more about after the election.
There are many factors and digital Yuan has a very small and unimportant role, that is my opinion.

Yatsan

legendary

Activity: 2576

Merit: 1252

Leading Crypto Sports Betting & Casino Platform

Quote from: Mauser on October 28, 2020, 04:39:57 AM

Quote from: KenCryptos on October 28, 2020, 04:08:30 AM

China has been testing the Digital Yuan and soon the Digital Yuan (DCEP) will be implemented soon. Will this move make China even more independent and more powerful? And what are the consequences for the world trade?

Read the article: China Soon to Legalize Digital Yuan and Ban Other Stablecoins, DCEP to Work With WeChat and AliPay

I don't think so. China is still not a free country, the economy and the hole nation is being controlled by the communist party. The same goes for the currency, the Yuan is not freely traded. So the same will likely go for the digital Yuan. Investors in a digital currency looking for security and independence. I think this currency will likely be important within China, but not internationally.

I agree. That will be certain that there could be an improvement when it comes to the modernization in the country for adapting into digitalization of Yuan but still such happening will not guarantee that China will gain more power just because of that. There are still lots of things to be considered to be able for such thing to make happen. Yes, we all do know that China is already a big and powerful country as for today but the existence of digital Yuan if ever will still not ensure that it will make China to gain immense power.

Switching from the traditional going to digital is such a great move for a country because they do have such capacity to adapt on doing that. Such improvement will just stay up into the country for self improvement on currency but such will not be for international perspective. To be able to make China even more powerful, digital Yuan must be known on international trading to gain more popularity and power for them.

romero121

legendary

Activity: 3234

Merit: 1214

Vave.com - Crypto Casino

Every step taken forward is supposed to make a positive cause. When it comes to China, they always tend to stay on the top of technology advancement. This is the reason why each and every forward move from China is much observed by the world. Maybe digitising looks simple, but it will be having big plans behind. One way or the other the currencies were connected with the economy, upon which we can't ignore the contribution of digital yuan.

Already WeChat and Alipay is dominant in the Chinese market, now Chinese digital Yuan getting added to it will give path for the usage. When it begins to circulate automatically there'll be progress atleast in the long term. Furthermore only when used beyond borders we can calibrate the real usecase.

deisik

legendary

Activity: 3514

Merit: 1280

English ⬄ Russian Translation Services

Quote from: coolcoinz on October 31, 2020, 09:15:11 AM

First of all, we should ash ourselves if the digital money make a country better or more powerful in any way. I din't believe that the switch from traditional to digital fiat banking made countries so much better. It's something we could call natural progress and it doesn't really make or unmake a powerful economy

There are effects of the second order as well, which we shouldn't discard

And their effect (pardon the pun) can be more powerful than that of the first order, in this case, the direct impact of the digital yuan on the Chinese economy. It can become stronger if its new currency will be able to edge out the American dollar a little from the global trade. This we should pay close attention to

So, while it is certainly true that the new currency is unlikely to effect a massive change as long as it stays within the Great Wall, this is not the whole picture. Moreover, this need not necessarily be how the Chinese commies themselves view their digital currency and its mission, whatever they might say aloud to the contrary if they say anything at all

coolcoinz

legendary

Activity: 2744

Merit: 1174

First of all, we should ask ourselves if the digital money make a country better or more powerful in any way. I din't believe that the switch from traditional to digital fiat banking made countries so much better. It's something we could call natural progress and it doesn't really make or unmake a powerful economy.

Xinarae*

sr. member

Activity: 1414

Merit: 326

China may be a very powerful country during which case the digital yuan will make China stronger and therefore the transaction is predicted to be easier without the medium of banking. A weaker yuan makes Chinese exports more competitive. For this reason if you purchase those products in foreign currency the worth are going to be lower. Weak yuan will make importing goods to China costlier. this may cause inflation to rise and hurt the Chinese economy and put pressure on moneylenders to take a position in other assets.

xSkylarx

hero member

Activity: 2366

Merit: 594

Seeing China that imposes strict law to their citizens, I think this will make them more powerful if they make each of their people to use it as an alternative to fiat. We know that we are slowly approaching the digital age so it will be not surprising if they replace it on their local money Yuan.

sensimilia

sr. member

Activity: 702

Merit: 251

Digital Yuan itself is not enough to make China more powerful. However, it could be another brick that makes China powerful

Rengga Jati

hero member

Activity: 2072

Merit: 656

royalstarscasino.com

Wow, honestly, in my opinion, China is really good at this, great. We can see how the country really concerns about this thing, they created their own CBDC and will develop it working with big partners. We all know that WeChat and also Alipay are also very big companies that most people in the world know. The effort of the country to emerge very trusted CBD and also its utility maybe not easy, but they will be able to do it.

The next question, will they destroy BTC?
if there is no prohibition to the society to concern with BTC, I think that they will not mean it, and many people will of course still concern about BTC. But if there is a new rule about it in the country and it is a must, I doubt that crypto will be still accepted there.

AndySt

legendary

Activity: 2142

Merit: 1012

Quote from: STT on October 30, 2020, 03:10:20 PM

Quote

However China only gets dollars, they have so much dollars in many forms cash,bonds,treasury,stocks and many many other forms that I think it would be understandable if we would say they want to get rid of it. How could they? They could spend their dollars to buy bitcoin

China doesnt need to do that, one of the most important factors with dollar is in many parts of the world it means oil because oil is traded, sold and exchanged via the dollar system. Even in Russia even in countries which oppose USA policy in every way they still are using dollar to be part of the oil trade. This is especially key to China who do not have many oil resources, they are greatly lacking in energy overall only coal do they have.
So when you ask what does China do with excess Dollars, they could spend almost all of it on oil and other commodities and buying resources production and contracts extending twenty years into the future to secure Chinas growth. To some extent they are doing this and reducing Dollar use, I dont see crypto is required to continue in this strategy.

I agree with your opinion. China did not intend and is not going to recognize bitcoin at the state level at this point in time, so they will spend their accumulated dollar reserves on completely different purposes. If the leading countries start making their government savings in bitcoin, then China may change its position and follow their example. But so far this should not be expected from the Chinese government.

Shasha80

sr. member

Activity: 1876

Merit: 318

I doubt Digital Yuan can make China even powerful, because no one will use it other than the Chinese themselves.
So as long as it hasn't been used globally, Digital Yuan will not be able to make China powerful, after all, the popularity of
USDT is hard to beat. So the Digital Yuan was created only to be used to control China's own population.

mindrust

legendary

Activity: 3276

Merit: 2442

China don't need a stronger or a different form of currency as most world currencies are already digital because most of them only exist in bank accounts, not physically. The power of the Chinese national currency come from their manufacturing power and that's what makes a country and its currency powerful.

CNY could gain so much value if the Chinese stopped devaluing it but then they would lose their manufacturing power and it would collapse the whole thing. Running CNY on a centralized blockchain (i know it sounds retarded) isn't the answer to this problem.

STT

legendary

Activity: 4060

Merit: 1448

Quote

However China only gets dollars, they have so much dollars in many forms cash,bonds,treasury,stocks and many many other forms that I think it would be understandable if we would say they want to get rid of it. How could they? They could spend their dollars to buy bitcoin

China doesnt need to do that, one of the most important factors with dollar is in many parts of the world it means oil because oil is traded, sold and exchanged via the dollar system. Even in Russia even in countries which oppose USA policy in every way they still are using dollar to be part of the oil trade. This is especially key to China who do not have many oil resources, they are greatly lacking in energy overall only coal do they have.
So when you ask what does China do with excess Dollars, they could spend almost all of it on oil and other commodities and buying resources production and contracts extending twenty years into the future to secure Chinas growth. To some extent they are doing this and reducing Dollar use, I dont see crypto is required to continue in this strategy.

Oceat

sr. member

Activity: 2506

Merit: 368

Quote from: BuNga_cute on October 29, 2020, 03:54:27 PM

As long as the digital Yuan is only used by Chinese citizens, it will not make the Chinese state stronger. China must make a strategy
so that the digital Yuan can be used by other countries. I am sure that many people prefer USDT backed by US Dollar rather than
having to use digital Yuan. But China's move to create a digital Yuan is a good first step, at least it can be an alternative payment in China.
And make the Chinese government increasingly powerful over its own citizens.

No matter what they make if they were the ones having a control over it then the tendency that most users wouldn't want to use it except for Chinese people will less likely gonna have a big impact on the world economy. It will only lead to more control over their own citizens so I doubt any non-chinese would like to invest in it, in fact we have USDT already that most people would like to use since it is backed by the US Dollar.

Indymoney

full member

Activity: 896

Merit: 236

Quote from: FACE 2 FACE on October 30, 2020, 04:29:27 AM

There is no doubt that the introduction of the digital yuan will raise China to another higher level compared to the level that it occupied earlier. Its own official digital currency is a guarantee of complete independence from the US dollar hegemony in the future.

There is nothing special happen to world with this because no other country going to invest or doing any trade with this all just one thing happen like they will have more control on their own peoples and their indpedence and they will more rich with this all as they will able to check all things inside country and can manage for their own sake and better profit.

FanEagle

legendary

Activity: 2884

Merit: 1117

Quote from: DoublerHunter on October 29, 2020, 06:33:00 PM

it will only be one way for their government to have control on their citizen's money for it will still be centralized and digital which their central bank will still have full access to it to know the status of exchanges and tradings within the country. Sadly if they will just accept digital yuan in exchanges then local traders of china will definitely have a difficult time in the global market for it could also change the perception of the globe towards the digital yuan of china as well.

What the real goal here could be to be able to exchange their dollar profits into Chinese yuan back again this way in order to make their own currency more scarce and valuable whereas dollar a lot less valuable. Let's be honest China takes trillions from american companies and those American companies sell it back to whole world for 2x and that is a good deal for USA because they double their profit and good for china because they get trillions and not so bad for the world because they get products.

However China only gets dollars, they have so much dollars in many forms cash,bonds,treasury,stocks and many many other forms that I think it would be understandable if we would say they want to get rid of it. How could they? They could spend their dollars to buy bitcoin, and exchange that bitcoin and use Chinese yuan to sell it to other nations instead of accepting dollars they could use digital currencies and trade it.

StyleForceOne

full member

Activity: 304

Merit: 100

Quote from: KenCryptos on October 28, 2020, 04:08:30 AM

China has been testing the Digital Yuan and soon the Digital Yuan (DCEP) will be implemented soon. Will this move make China even more independent and more powerful? And what are the consequences for the world trade?

Read the article: China Soon to Legalize Digital Yuan and Ban Other Stablecoins, DCEP to Work With WeChat and AliPay

I've seen huawei will make an inbuild wallet in its new phone with access to digital yuan.
China really gets a lot of power simply because it probably will become first cbdc holder out there.

7788bitcoin

legendary

Activity: 2282

Merit: 1023

Quote from: KenCryptos on October 28, 2020, 04:08:30 AM

China has been testing the Digital Yuan and soon the Digital Yuan (DCEP) will be implemented soon. Will this move make China even more independent and more powerful? And what are the consequences for the world trade?

It all depends upon the trade relations they make globally, they have some great relationship from certain countries and they are investing heavily in certain European countries as well as in Africa and going by that you can already call them one of the most powerful country in the world but coming up with a digital Yuan will not make any changes drastically until there is a huge market for it which are ready to accept it right away.

FACE 2 FACE

full member

Activity: 756

Merit: 103

There is no doubt that the introduction of the digital yuan will raise China to another higher level compared to the level that it occupied earlier. Its own official digital currency is a guarantee of complete independence from the US dollar hegemony in the future.

Topic: Will the Digital Yuan makes China even more powerful? - page 2. (Read 683 times)