Expert: China’s Digital Yuan Will Target the Dollar, Not Bitcoin

With its forthcoming digital yuan, China will aim to rival the U.S. dollar, not Bitcoin, say experts.

UNITIZE

Having learned what it needs from the cryptocurrency space and blockchain, China will aim to rival the U.S. dollar, not Bitcoin (BTC), with its highly-anticipated digital yuan.

Matthew Graham, a veteran investment banker in China and the CEO of Beijing-based Sino Global Capital — analyzed what is known so far about the forthcoming digital currency and argued that the Chinese government sees new technologies as a “leapfrog opportunity” to chip away at the dollar’s hegemony.

Speaking with Boxmining founder Michael Gu at the Unitize conference on July 6, Graham said that even though it’s extremely difficult for China to internationalize the renminbi:

“Swift, CHIPS, Fedwire […] they’re antiquated, they’re expensive, they’re slow. It’s 2020 and we have transactions that take three days to clear and that are far more expensive than they should be. All of these technologies that underpin much of the USD-centric global economy are really showing their age. So that’s a big opportunity [for China].”

Beijing uses the acronym DCEP to refer to its forthcoming digital currency electronic payment system and, as Matthew Gu noted, has “borrowed a lot of its technological details from blockchain,” including concepts such as UTXO. 

Yet DCEP is a far cry from public blockchains such as Bitcoin. It will reportedly be issued by the People’s Bank of China and remain under the central bank’s full control and authority, as with other existing national fiat currencies. ……..more here 

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