RE: The Dragon Stirs
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Nice overview, just some remarks:
China's DCEP currency use heightens security
Most of all, it heightens surveillance & control, which is what the CCP wants. Every transaction is recorded & can be followed up on. It will probably become a bit harder to transfer money abroad, as well. For the time being it will not replace fiat money, though. There are still hundreds of millions of poor Chinese in rural areas who probably are not connected to the necessary infrastructure.
transaction speeds of a government-backed digital currency would also surpass those of other services
Dubious. Alipay & Wechat Pay already offer a similar functionality & there don't seem to be any problems regarding speed.
How important would the USD be if a country's digital currency didn't rely on it? The value of the USD may lower as a result
Perhaps, but improbable. As you rightly said in the last part of the article, it's a matter of trust. Experience shows that you cannot trust the CCP.
What's more, the CCP refuses to have the RMB traded freely. Which is another reason why many people are not really interested, I suppose.
Thank you very much for your review.
Regarding the trust in the USD:
I should have expanded my explanation. Again, thanks for the addition. I was thinking about the rise of other digital currencies when I wrote about the digital yuan. I wonder if those upcoming digital currencies could circumvent the influence of the dollar if, let's say in an example involving sanctions, the country can use digital currency to purchase materials outside of US influence.