Digital Yuan as a possible Cyber Weapon

[Wexnident]

Summary of the article basically describes how digital yuan could be used as a cyber weapon, especially because of how China has developed its own system of payments from the past. They, as the country who pushes forward with mobile-first payments, have already dominated people with no bank accounts. A lot of fear towards the Digital Yuan is presented because of how China could potentially spread it not only in their country, but also overseas. This was the so-called new Silk Road of China. And there's also how the US sees no need for their own Central back to develop a digital currency.

Tbh, I'm more than up to it for the digital payment system that China is currently pushing for. The idea that is, but them doing it? Not so much. IF you were to navigate on the bottom of the article, it has already stated how the system introduced could induce a control freak like attitude from China. Just like how most of their country ( if not whole ) is observed by the Skynet system, it shows that they could observe every transaction made, and freeze any transactions or even seize their assets.

Of course, Bitcoin is doing something similar to this, but China holds the upper hand in spreading its influence right now. Just like what the US fears, China could harness the system of Alipay and WeChat. If spread across Asia, ignorance could lead to acknowledging this instead of Bitcoin because of the mass influence those apps could bring to Social Media.

Soruce: https://magazine.cointelegraph.com/2020/03/16/china-digital-yuan-economic-cyberweapon-us-disarming/

[avikz]

I wouldn't say that there is no possibility as such. But it's harder than we could think off. A lot of countries are already planning for their own national digital currencies in Asia including India. So China pushing forward for their own digital Yuan will only be successful to those countries who have taken heavy loan from China, Like Pakistan, Sri Lanka or Maldives. Otherwise, no other countries will allow the usage of Yuan in their own soil. Definitely not the big economies like India, or South Korea or Japan. The threat is there, but wouldn't make that much impact internationally - definitely not after this COVID-19 case where the economy is resetting!

[Darker45]

I wouldn't say that there is no possibility as such. But it's harder than we could think off. A lot of countries are already planning for their own national digital currencies in Asia including India. So China pushing forward for their own digital Yuan will only be successful to those countries who have taken heavy loan from China, Like Pakistan, Sri Lanka or Maldives. Otherwise, no other countries will allow the usage of Yuan in their own soil. Definitely not the big economies like India, or South Korea or Japan. The threat is there, but wouldn't make that much impact internationally - definitely not after this COVID-19 case where the economy is resetting!

The problem with the Chinese Yuan converted into a digital currency is that it will now have a larger role to play in terms of international trade. This is actually posing as a danger to the status quo. This is being interpreted by some as a move to become the new global currency and dominate the international financial field. As a matter of fact, Japan has already repeatedly expressed concern over this. It has already raised this concern to the G20 and G-7 member countries. They are also now trying to come up with their own Japanese digital currency in response to China's move.^[1]

When it comes to countries heavily indebted to China, those mentioned are just a few of the so many countries especially in Asia and Africa which are basically now founded upon China's economic support. We all know how China is manipulating its influence over these countries to gain international support in times of need. These countries falling into China's debt trap will certainly be voting for whatever side or decision made by China that has to have the need of international approval. China is actually building up its clout over the world by offering grants to impoverished countries.

[1]
https://www.bnnbloomberg.ca/japan-s-aso-expresses-concerns-over-china-s-digital-yuan-1.1394506
https://www.coindesk.com/fearing-currency-struggle-japanese-politicians-want-g7-response-to-chinas-digital-yuan
https://thenextweb.com/hardfork/2020/01/24/japan-working-own-digital-currency-compete-facebooks-libra-china-yuan/

[so98nn]

China may be a overpower looking at its economic situation right now because they are huge manufacturers of things that world wants on daily basis.

They will surely drop their economy now due to Corona stuff but let's not take them for granted as they are very spurious country they will surely have back doors right now. I mean as the stories are coming up that they have made Corona stuff intentionally then then they must be having plan B to recover their economy if not.

The cyber weapon story could be just another side of them.

[pawanjain]

As many such crashes occurs and banks seizes people's money people will get to know that their money is not theirs anymore.
They will find an alternative to store "their" money and will mature to use decentralized currencies like bitcoin or better if in future it exists.
So I don't think that the digital Yuan will even cause a little damage to the market since most of the people from the world are already against China for what they did with the Covid-19. China's economy is soon going to be doomed.

[20kevin20]

All digital national currencies will be control weapons whether you like it or not. I don't have much more trust in my or USA's government than I have in China's. We're all pushing ourselves into control every day.

European, Chinese and US banks are all working on a digital currency AFAIK. Things will change as soon as they'll release their digital versions of their currencies and you'll have no chance to escape their trap.

I don't know whether to think of the Digital Yuan as a cyber weapon against the US. All digital currencies will be cyber weapons against the entire humanity, so what's the point?

[Nadziratel]

In order for these theories to be true, they must be internationally accepted. And this is not an easy thing to do even for Bitcoin today. It is not very likely for me that a central entity emerging from scratch will be so accepted.

[Sadlife]

Digital Yuan is more a much better improvement of banks paper money and it also inherited the regulations of Central banks but much more strict compared to any other. Even though they use different technology, the big question is. What is it backed with ?
If it's still Oil or Gold, to bad it wont probably dominate the fiat currencies cause it might collapse due to the financial crisis.

[tippytoes]

Digital Yuan is more a much better improvement of banks paper money and it also inherited the regulations of Central banks but much more strict compared to any other. Even though they use different technology, the big question is. What is it backed with ?
If it's still Oil or Gold, to bad it wont probably dominate the fiat currencies cause it might collapse due to the financial crisis.

Just wondering, does it need some sort of backing to exist since it is digital? Will the value be tied up to their local fiat? Also, maybe this digital yuan is aiming to be like the US dollar, but in digital form.

[Wexnident]

Just wondering, does it need some sort of backing to exist since it is digital? Will the value be tied up to their local fiat? Also, maybe this digital yuan is aiming to be like the US dollar, but in digital form.

It doesn't seem so based on what I understood on the available information given about it. They described it as something different from Bitcoin or stable coins after all, so yea. They did state that it would work in a two-tiered system though, where the Peoples Bank of China would be at the top and the commercial banks below. It just further reinforces the fact that they could pretty much see every transaction made when using Digital Yuan. The testing was supposed to happen at either end of 2019 or the start of 2020, but possibly because of the coronavirus, testing has been postponed temporarily.

[buwaytress]

It's got to be the most ridiculous quack I've read in a long time. The authors probably don't realise that Chinese have been using digital money overseas for years now. I've seen it in chinese stores in East Africa, in South Asia and in Europe for as long as I remember. Digital yuan or wechat pay or whatever, this ridiculous fear that a state can spread its dominion overseas through money is already here and guess what? People are cool with it.

No matter what, you want to stay in the fiat system, it doesn't matter what form it takes, it's always controlled by the government and it can bite you in the ass whether you like it or not.

[Yogee]

Cyber weapon my ass lol. Anything that has a Chinese name attached to it, these western media will always try to write something to sow fear.

[BrewMaster]

haha.
there is no difference between Cryptocurrency Yuan (digital cryptocurrency) Digital Yuan (money that is handled by banks). it may be the reason why you heard the name as "digital" Yuan instead of "crypto" Yuan becasue there is no difference.
as for cyber weapon, they can't do more than whatever US is doing already! so it is nothing new here.

[Ucy]

Well, the real solution to this is real decentralization, but it seems everyone has his own agenda. I don't see true sincerity anywhere yet. People who should be more concerned are suspicious of each other while creating or encouraging evil that will most likely be used against humanity.
There should be neutral alternatives that are built on solid Bitcoin principles. The alternatives must be well decentralized, anonymous/private, transparent, immutable, trustless, permissionless, censorship resistant, safe, etc. Probably better to start thinking of building local decentralized networks(whether virtual or physical or both) as very few seem motivated to build the real thing for worldwide usage.

[Ozero]

China may be a overpower looking at its economic situation right now because they are huge manufacturers of things that world wants on daily basis.

They will surely drop their economy now due to Corona stuff but let's not take them for granted as they are very spurious country they will surely have back doors right now. I mean as the stories are coming up that they have made Corona stuff intentionally then then they must be having plan B to recover their economy if not.

The cyber weapon story could be just another side of them.

There is no cyber weapon, but the Chinese digital yuan will have a very big impact on the global economy. In China, a lot of different types of goods are now being produced, which are practically not produced in other countries, are very practical, more or less of good quality and cheap. From China, you can now order anything by mail. I can imagine what will happen if all this trading takes place using the digital Chinese yuan, which is being prepared for release.
If the United States and other major world states are delayed with the release of their national stable coins, they will lose a lot economically.

[betty11]

I can't store fund on a digital payment system that will wake up one day and be feeling happy and just freeze my asset, the Chinese government are not democratic and as such very difficult to appeal to. The USA should consider having a stable coin for her most payment to avoid been left behind. I still support a decentralized system.