Will the Digital Yuan makes China even more powerful? - page 3.

Twinkledoe

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Quote from: DoublerHunter on October 29, 2020, 07:33:00 PM

Quote from: naikturun on October 29, 2020, 04:18:28 PM

Chinese currency has been around for a long time in trading so the arrival of digital China will only strengthen it in the digital world but USDT will still lead as the strongest stable currency. but I wonder if the dcep will grow rapidly in the long run.

^ I can say yes if they really want to be independent but becoming more powerful I doubt for there are still a lot of things to consider since china is not a free country and to think that Yuan is not being accepted globally then it will end up the same thing. However, 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.

That is the main difference here. The recognized global currency up until now is US$ but with chinese yuan, they are not. The global market is based in US$ prices. So I don't think it will change in the near future. But within their jurisdiction, this creation of digital yuan, may have significant impact among its citizens. But I don't know if they will have valuable influence in the global market.

DoublerHunter

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Quote from: naikturun on October 29, 2020, 04:18:28 PM

Chinese currency has been around for a long time in trading so the arrival of digital China will only strengthen it in the digital world but USDT will still lead as the strongest stable currency. but I wonder if the dcep will grow rapidly in the long run.

^ I can say yes if they really want to be independent but becoming more powerful I doubt for there are still a lot of things to consider since china is not a free country and to think that Yuan is not being accepted globally then it will end up the same thing. However, 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.

BuNga_cute

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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.

naikturun

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Chinese currency has been around for a long time in trading so the arrival of digital China will only strengthen it in the digital world but USDT will still lead as the strongest stable currency. but I wonder if the dcep will grow rapidly in the long run.

avikz

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Quote from: KenCryptos on October 28, 2020, 05:08:30 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

No I don't think so! They will be able to reduce a huge amount of cost they were spending for printing money, but that's all! That would not make China more powerful. Digital Yuan would not make their economy grow in any way apart from the cost savings!

Also, China will be able to effectively cut down on black money from their economy as digital yuan will help the government to monitor their people's finances very closely. But that will not have a huge impact on the economy for sure!

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Quote from: shield132 on October 29, 2020, 12:07:01 PM

The USA has great power in this case because USD is considered as a major, global currency and is the most accepted one

And you have just explained how it can make a country more powerful without even making its economy any better. In other words, if the digital yuan turns our more convenient than the non-digital dollar, this alone will make China more powerful on the international level. It won't necessarily make the yuan stronger than the dollar on its own, but it will certainly make the dollar weaker. And from the Chinese point of view, that may be a great deal already, a big step forward

As the saying goes, well begun is half done

el kaka22

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China is very smart about their money and how they spend it, they know that people may want to continue work with them no matter what they do, or they may want to leave and work with other places like India or Bangladesh or any other place for cheap labor, so they realize that having more and more manufacturing factories is not the solution to their future economical situation.

They also want to rule over the world like any other nation, given option all 200+ nations would definitely pick world domination, but only few have that possibility. So, what do they do? With the trillions of dollars they have, they spend it on investing in other nations companies, buy shares from German cars, buy shares from American tech companies, buy shares from Russian oil companies, basically go all out. This Chinese digital yuan would also be right step to get shares from all the crypto currencies in the world too.

Febo

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Quote from: KenCryptos on October 28, 2020, 05:08:30 AM

Will the Digital Yuan makes China even more powerful?

China dont need anything to be more powerful. They are most powerful country of last 4000 years. They had a short decline in last few 100 years. But that will be only short lived.
Not only countries but also banks and corporations will make stable coins and pushed them to others to use them. That is the future we will see in next years.

shield132

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No, how digitalisation of currency can make the country more powerful? What makes the country powerful and independent is the strength of economics. The USA has great power in this case because USD is considered as a major, global currency and is the most accepted one. The same doesn't apply to China and digitalisation can't make this process to happen, it has nothing to do with it. Also, digitalisation can't lessen import and increase export (that also makes a country powerful).
In any way, there is a bad situation around china right now. Major countries want to move factories from China to another small countries that have less impact on anything and don't have any power in overall + have cheap workers.

royalfestus

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Quote from: KenCryptos on October 28, 2020, 05:08:30 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

Has USDT, USDC, BUSD etc make US more powerful? No, but cryptocurrency benefit more from it.I believe those currencies are better backup for value in the space. They prove how stable the space can be and the space has produced more stable coin and can see it has been growing in recent months. By the end of this bull market I expect at least $300billion worth stable coin in the space.

dothebeats

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This currency will not go outside of China, and even if it does, most people will just go the standard traditional route of using USD for their purchases outside of their home country. Shifting to a digital currency would not stimulate their economy in any way, nor will it help in getting them close to overtaking USD as the global reserve currency. It'll just make digital transactions seamless, reduce the country's spending on minting new physical currencies and overall easier access to change the available circulating supply of the Yuan to further complement the current economic situations.

You still have to account the overall willingness of people to use it. They may be forced to do so within the coming months/years but if the general public don't see any valid reason to make the switch, they won't, especially if familiar options are still within reach.

deisik

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Quote from: KenCryptos on October 28, 2020, 05:08:30 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

The short answer is, it depends

If this currency is used only within China, it is not going to change anything. Well, if it turns out more efficient, it may help China a little, of course, but I don't think that much. On the other hand, they are developing not only the digital variety of yuan but also a kind of regional currency. This is a different matter, and since many Asian countries such as Japan and Korea have already expressed their favorable attitude toward such a currency, it may be a game-changer for this corner of the world (read, the dollar domination may be undermined)

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Quote from: KenCryptos on October 28, 2020, 05:08:30 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

China is a communist country that has everything in the control of the government and their currency is traded within the country. I believe the digital yuan was created in a bid to always have relevance in the digital world.
Locally, this may do well for government since it will strengthen their control over the people but I do not see it doing well internationally. This is because I do believe anyone outside would want to use a digital money that is controlled by the government. That would defeat the very purpose of bitcoin and the Blockchain technology.

ReiMomo

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Legalizing digital yuan and banning other stable coins will only enrich the country.

Furthermore, if this digital yuan can only be used and will only circulate within their country will it still be accepted internationally in return? Somehow it may enrich the country for all exchanges that can only be done within themselves however if digital yuan will also not be accepted globally then how can they be more powerful if this digital yuan cannot compete with the value of other foreign currency.

The real intention is not revealed yet rest assure there are, and one of these it somehow can be used by their government to monitor and have control over their citizen's assets. In fact, it can also weaken the countries economy because if they do so it will be difficult for some in using their digital yuan for trading and exchanges. So IMO they still need to review this bill of legalizing digital yuan especially its usage and

SquallLeonhart

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I am not yet sure about what this digital Yuan is all about and how it's going to work, but one thing I do know for sure is that being powerful doesn't have to do with digital currency; there are more to a country being powerful than just digital currency. If they release it I am sure that it's only going to be in their country and the article says they are going to ban other stablecoins and on their digital Yuan will be traded, so what difference does it make?

It's still like when you're just holding the Yuan, except this time it's digital and makes trading cryptocurrency easy for the people in the country. If they want to be powerful, then they still have more work laying ahead of them to do. And I thought they already released the digital Yuan, because I saw an article once that said something like that.

Lorence.xD

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Quote from: gentlemand on October 28, 2020, 05:54:35 AM

It'll increase their control over their own citizens and economy so I guess in theory they'll be making more money. Internationally I can't see many nations or investors wanting to adopt something that remains under full Chinese control at all times. A flick of a switch and off your money goes.

If they ever pass the testing phase, digital yuan will be another shackle for its people. I think the only economic benefit of this digitized nation's currency is the process that the currency has to go through, meaning that they do not need to go through the bank instead it goes straight into the individual's digital wallet. I think all digital currency will be gone when everything goes south, like a total damage to electric grids around the world.

Salauddin1994

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China has a strong position in the world economy while the growth of many of the world's top economies in the corona epidemic has been negative it has returned to positive growth because even if china introduces the yuan currency there will be a huge difference between crypto. The yuan will depend on the country's economy will be governed by the government but cannot control crypto even if the outbreak of the corona epidemic were introduced the wounds of the world economy would not heal easily.

hatshepsut93

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Digital Yuan won't mean anything if it won't be sufficiently adopted. Stablecoins aren't well adopted in real world, and this central bank coin can fail too, even if it will get support from the government, like making it a payment method for government services. Right now there's a huge competition between payment solutions - there's giants like Visa and Mastercard, Google Pay, PayPal, Venmo, lot's of smaller payment methods, often integrated with some platforms, and of course crypto. How can government compete with all of them, because as we know, governments lose to private companies almost all the time.

STT

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China stated a while back an opposition to freely traded crypto which is not much surprise and this isnt especially news. In any case China is part of the SDR scheme run by the IMF and included in digital currency standard globally, the main strategy for Chinese currency reserves seems to be to withdraw from dollar system and start to hold far more gold; they have been building this over 20 years. SDR or standard gold is a far larger operation then attempts to capture any online innovations with this latest scheme.

Hydrogen

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Quote from: KenCryptos on October 28, 2020, 05:08:30 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?

This question revolves around whether emerging crypto markets might be compared to a young silicon valley in its infancy. Whether china is well positioned to capitalize on growth potential, in order to someday become renowned worldwide as a hub of global crypto based trade and commerce.

China hasn't done much to nurture its cryptocurrency or crypto mining industries. Which could be said to depend heavily upon innovation, new ideas and small start ups. Their approach has been more top down big business. They own bitmain, and a majority of bitcoin's mining hashrate. But have not done much to empower smaller less established crypto players who could be considered the largest sector of future growth.

This could mean that in the future, other countries who do more to support small business in crypto will overtake china and pull ahead.

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