While the United States is dragging its regulatory feet and being bamboozled by bureaucracy, China forges ahead and could launch its own digital currency in a matter of months.
Crypto Yuan Nearing
According to a central bank official, China's planned crypto yuan is not all about spying on its citizens. The world's financial regulators are turning their eyes on the red dragon as it rises to be one of the first countries to launch a central bank-backed digital currency.
It has been widely expected that the official name Digital Currency Electronic Payment (DCEP) will give Beijing full control over cash flow and access to all associated personal information that accompanies it.
However, the head of the People's Bank of China's digital currency research institute, Mu Changchun, wants to retain some of the anonymity that residents have with cash. In a strongly uncharacteristic move at a conference in Singapore, he stated;
"We know the requirement of the public is to keep anonymity by using paper money and coins … we will give the people who demand it anonymity in their transactions,"
According to reports, he added that it will still be AML, counter-terrorism and tax rules in place like fiat, and the bank will still keep control of the currency, but … they will have a certain level of & # 39; verifiable anonymity. "
" It's a balance we have to keep, and that's our goal. We do not seek full control of the public information. "
A threat to the United States?
Much of the fear, uncertainty, doubt and even anger towards crypto this year has been fueled by Facebook. Zuckerberg and his billionaire friends want their own controllable currency, and the world has basically said & # 39; no way & # 39 ;.
According to MarketWatch, the head of the billionaires in social media went so far as to say that the impending rise of a Chinese cryptocurrency may undermine the overall dollar dominance of global trade and finance. He could be on anything. The extra anonymity promised by PBoC will be another major headache for US lawmakers and bankers.
The reason why crypto is so far behind in America stems from its galloping paranoia over money laundering, tax evasion and terrorist financing (which is mostly done in cash). Beijing has the same concerns, but is willing to advance the technology to gain an economic edge in a world that has been dominated by greenbacks for the past century.
Will China's cryptocurrency threaten the dollar dominance? Add your thoughts below.
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