Will China take over the world with the Digital Yuan?

[AndySt]

A digital renminbi is just one solution by the central bank of China to use blockchains to solve the problems of their country's monetary system. This coin will use a centralized chain to manage its system. So it will never be decentralized and open to all.
Strict KYC is also an ingredient for using China's digital currency.
I think China's digital currency is not a problem because it is only used in this country.

Specifically in this case, I agree with you, because at this point in time everything is limited to the domestic Chinese market and directly for use by individuals, but I do not think that everything will be limited to this and in the future it may come to a wider application, including international settlements. At this point in time, China has not yet shown a broad interest in using its currency for international settlements, because it is a matter of controlling emissions, but future currency and trade wars will in any case force China to change its current behavior in the external economy.

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[int03h]

A digital renminbi is just one solution by the central bank of China to use blockchains to solve the problems of their country's monetary system. This coin will use a centralized chain to manage its system. So it will never be decentralized and open to all.
Strict KYC is also an ingredient for using China's digital currency.
I think China's digital currency is not a problem because it is only used in this country.

Specifically in this case, I agree with you, because at this point in time everything is limited to the domestic Chinese market and directly for use by individuals, but I do not think that everything will be limited to this and in the future it may come to a wider application, including international settlements. At this point in time, China has not yet shown a broad interest in using its currency for international settlements, because it is a matter of controlling emissions, but future currency and trade wars will in any case force China to change its current behavior in the external economy.

If they want to take their national cryptocurrency further they need international treaties similar to the dollar Petro or their currency pact for a region. I believe that big countries like the US, UK, Russia, Japan and the European Union cannot easily let China bring their currency to the world. Competition will inevitably happen between currencies, except for the services of big companies such as Paypal, Visa.

[Vishnu.Reang]

Chinese Yuan is one of the most manipulated currencies in the world and there is no reason for anyone to suspect that the Digital Yuan will be any better. Within China, there will be some acceptability for this new CBDC, but why should anyone outside China use this currency? And there is zero chance that any of the Bitcoin users in China or in other countries would shift to Digital Yuan, since Bitcoin is much superior in comparison.

[Twentyonepaylots]

Biggest selling point of bitcoin and most cryptocurrencies is the fact that they are decentralized, offering unending freedom to its users. Digital Yuan is very much in its infancy, and would have a hard time competing against the much superior and well-established cryptocurrencies in the market. I guess their biggest advantage is China's large population which, provided that a mandate is passed for everyone to own a digital yuan, could help the budding coin go on par with bitcoin.

[DrBeer]

For the digital yuan to replace the US dollar, the global economy must have a need or interest. At the same time, there should still be understandable risks of using the new world currency. The question is - how do you think - is the current situation in the world economy in order to create a need to change the international currency of mutual settlements? Is there an assessment of the risks of working with a digital currency that is completely controlled, let's say honestly, by the ruling elite of the country, where there are a lot of nuances, underconfusions, information hiding, and hidden goals? For example, the United States cannot immediately stop or somewhere ban the circulation of the dollar. In a digital exchange protocol, this can be done quite easily, but I am sure that many of the technologies underlying the digital yuan will be classified and remain proprietary.

Firstly, ever nation that wants to get out from under the thumb of the US-denominated financial system has an incentive to adopt the digital Yuan. This includes countries that want to evade US sanctions, as well as those that want to weaken US hegemony.  At a minimum, this means Iran, North Korea and perhaps Russia to an extent, although the Russians are more likely to attempt a Russian digital currency than to become subservient to China. But as a strategic geo-rival, the Russians are very much interested in weakening the US globally.

I understand your logic. But let's be realistic - those whom you indicated (the countries who want to avoid punishment / sanctions) are essentially a "by-product of civilization", and their share in the world economy is a drop in the ocean! For all the "greatness" of Russia, it is barely creating 1.5% on a global scale, and now it is in stagnation and will continue to fall. North Korea, sorry, this is nothing at all. The rest will give a total of 1-2%. All this is at the level of calculation error
And the position of China, it seems to me, is not as obvious as exactly the "world leader". I think their goal is China as a single and main center in Asia, Africa, and possibly South America. But the role of the world "leader" and the world "gendarme" is clearly not for China, for many reasons.

[Abiky]

A digital renminbi is just one solution by the central bank of China to use blockchains to solve the problems of their country's monetary system. This coin will use a centralized chain to manage its system. So it will never be decentralized and open to all.
Strict KYC is also an ingredient for using China's digital currency.
I think China's digital currency is not a problem because it is only used in this country.

If China continues with its strict policies, it's unlikely the "Digital Renminbi" will become the world's next reserve currency. Things might remain the same, except that national currencies will no longer exist in a physical form. The end of paper money will change our economy for the better. Now, which currency will dominate the world will greatly depend on a specific country's prevalence in the mainstream world. So far, the United States dominates the world with the US Dollar. The currency is stable, trusted, and backed by a large number of countries worldwide. For it to lose its reserve status, the US economy must decline massively until there's no point for recovery. I don't see this happening within decades from now.

Nonetheless, it seems to me that China will remain behind the US every step the way. The "Digital Yuan" (Renminbi) is still far from taking the US Dollar's place as the reserve currency of the world. I'm guessing the US will act quickly by launching the "Digital Dollar" to the public. Development of the new digital currency might be already taking place behind the scenes, while the launch awaits approval by Congress. Coins and paper money will be no more, as we enter a cashless society. It'll only be a matter of time which countries remain dominant forces in the mainstream economy and which go all the way down the drain. Just my thoughts

[TheGreatPython]

Biggest selling point of bitcoin and most cryptocurrencies is the fact that they are decentralized, offering unending freedom to its users. Digital Yuan is very much in its infancy, and would have a hard time competing against the much superior and well-established cryptocurrencies in the market.

Indeed and that's the reason why no government stablecoin would ever work either because a stable coin governed and taxed is nothing more than a digital wallet like Paypal.

Digital Yuan is very much in its infancy, and would have a hard time competing against the much superior and well-established cryptocurrencies in the market.

I don't think China even wants to compete and beat crypto because they are a different prospect. The main aim of China is to make its own currency Yuan the most powerful currency in the world. Right now everything is valued in standard USD (United States Dollar) and that is what China aims to occupy basically.

[BuNga_cute]

Chinese Yuan is one of the most manipulated currencies in the world and there is no reason for anyone to suspect that the Digital Yuan will be any better. Within China, there will be some acceptability for this new CBDC, but why should anyone outside China use this currency? And there is zero chance that any of the Bitcoin users in China or in other countries would shift to Digital Yuan, since Bitcoin is much superior in comparison.

It really doesn't make sense that Bitcoin users will switch to using Digital Yuan, because in fact there is no strong reason why everyone outside
China should use Digital Yuan. But if many Chinese citizens use Digital Yuan I can still understand. Even though China is a big country, I don't believe
China can make the Digital Yuan for international transactions. So it is impossible that China will rule the world with Digital Yuan.

[AndySt]

Chinese Yuan is one of the most manipulated currencies in the world and there is no reason for anyone to suspect that the Digital Yuan will be any better. Within China, there will be some acceptability for this new CBDC, but why should anyone outside China use this currency? And there is zero chance that any of the Bitcoin users in China or in other countries would shift to Digital Yuan, since Bitcoin is much superior in comparison.

It really doesn't make sense that Bitcoin users will switch to using Digital Yuan, because in fact there is no strong reason why everyone outside
China should use Digital Yuan. But if many Chinese citizens use Digital Yuan I can still understand. Even though China is a big country, I don't believe
China can make the Digital Yuan for international transactions. So it is impossible that China will rule the world with Digital Yuan.

The question is certainly debatable, but I would say a little differently about the manipulation of the yuan, namely that the Chinese authorities are more intruding into the area of exchange rate pricing of the yuan than the authorities of other countries, where the issue of other world reserve currencies comes from. I also believe that there is no reason to compare the use of the digital yuan and bitcoin, because in the first case we are talking about a centralized fiat currency of a sovereign state and there is no contact on the application, because I am not sure that the Chinese authorities will calmly look and allow the tweets of some businessman to raise the exchange price of the yuan by 1000 percent or vice versa. Therefore, it is quite strange and ridiculous to talk about the transition of bitcoin users from different countries to the digital yuan, these are completely different things.

[RealMalatesta]

Digital Yuan is very much in its infancy, and would have a hard time competing against the much superior and well-established cryptocurrencies in the market. I guess their biggest advantage is China's large population which, provided that a mandate is passed for everyone to own a digital yuan, could help the budding coin go on par with bitcoin.

Digitization of any currency will work in favor of promoting bitcoin in the end. I agree governments will find hard time to make it widely used one but people will choose what mostly fits for their all needs which includes privacy/investment opportunity/problem-free. So, I welcome any government that will work on their own CBDC.

China's population doesn't matter I think because the more the population lesser is the education and living standard in a country. What actually makes them strong is the amount of export they do to other countries for electronics and other goods.

[ene1980]

Digitization of any currency will work in favor of promoting bitcoin in the end. I agree governments will find hard time to make it widely used one but people will choose what mostly fits for their all needs which includes privacy/investment opportunity/problem-free. So, I welcome any government that will work on their own CBDC.

The problem with these CBDC is that the government have complete control over them, if you are using it to purchase any investment the government does not approve they can very well block the payment or render them useless. So it is better to avoid them and if no one is really using them it will exit the market eventually.

China's population doesn't matter I think because the more the population lesser is the education and living standard in a country. What actually makes them strong is the amount of export they do to other countries for electronics and other goods.

May be population is a problem when it comes to living standards but the main thing that is helping them in massive production and export is their very same population, so it is a two way process. Their strength is the massive population and they are making use of that to their advantage even though some of the items are cheap quality.

[dimox]

actually, China, slowly but sure, try to send their intangible form to their relative. and without people awareness, they start to uphold what its come. but, its far enough for digital yuan can beat other popular crypto. crypto user know how great the greater and how to deal with

[cabron]

Digitization of any currency will work in favor of promoting bitcoin in the end. I agree governments will find hard time to make it widely used one but people will choose what mostly fits for their all needs which includes privacy/investment opportunity/problem-free. So, I welcome any government that will work on their own CBDC.

The problem with these CBDC is that the government have complete control over them, if you are using it to purchase any investment the government does not approve they can very well block the payment or render them useless. So it is better to avoid them and if no one is really using them it will exit the market eventually.

That's likely what would happen since they want to surveillance to everyone. It's difficult to hide what you have and what you do with your money when you only use CBDC wallet. If you picture it on your mind, we are all going to be watched what we are receiving and sending and they can easily seize it. But I would really think they will allow cryptocurrency for China already said BTC is an investment.

[lixer]

What are your thoughts? Will China take over the world with the Digital Yuan? Or will everything else remain the same? Do you think China's Digital Currency will force other countries to launch digital currencies of their own? How long do you think the transition will happen from paper money to digital Fiat?

If they are going to come anything close to that, digital is the least thing that they even need to achieve that. In fact that’s not what they need if they want to be on top of economy. This digital Yuan first of all is not being used by everyone around the world, if it was like that then we would have said that people around the world will start investing in it, rather it is still the same citizens of their country that are making use of it and it’s of no difference with the main yuan currency, they are just the same thing, just that this one is the digital.

If they have the plans to reach the top economy then there are other things they have to do and having a digital currency is not even on the list of what they should be doing to be able to achieve all that. They should work more on more exports and reduce imports. Apart from that there are still lots of things they can do.

[Abiky]

Digitization of any currency will work in favor of promoting bitcoin in the end. I agree governments will find hard time to make it widely used one but people will choose what mostly fits for their all needs which includes privacy/investment opportunity/problem-free. So, I welcome any government that will work on their own CBDC.

China's population doesn't matter I think because the more the population lesser is the education and living standard in a country. What actually makes them strong is the amount of export they do to other countries for electronics and other goods.

Exactly. Any CBDC will benefit Bitcoin in the long run. Once China releases the "Digital Yuan" (or "Digital Renminbi") to the public, other countries will follow suit in launching their own CBDCs. What matters is the economic model of the currency in question. Digitalization is only meant to "phase" paper money for good. My guess is that everything will remain the same with China's CBDC in play. It will be up to other countries to adapt themselves to the latest trends in the Fintech space.

Nonetheless, we cannot deny China's ambitions in becoming the most powerful nation in the world. It's now the second-largest economy in the world, rivaling the United States in every way. The US Dollar is still the world's reserve currency, but we all know that nothing lasts forever. Some say that China will be able to "bypass" US sanctions with a digital currency of its own. Imagine what will happen in the future if the US becomes reluctant in launching its own "digital dollar" to the public. It'll become a laughing stock as other countries gain all of the advantage. Only then, China will rule the world becoming the biggest economic superpower with the "Digital Yuan". Just my thoughts

[Fredomago]

Now the Chinese government has banned all transactions using cryptocurrency, meaning that the Chinese government does not support the development of cryptocurrencies that have been developing so far, and at this time when looking at the conditions of the cryptocurrency market are very apprehensive.

They did that before and change their position after, so we just have to wait again for them to reconsider this decision and wait if they'll
change it up again and start accepting crypto transaction back.

China is known to this kind of action, they don't want their people to gain more from something that the government is not profiting.

Control over all the power and wealth, that's how they wanted to see everything from their end.

[AndySt]

Now the Chinese government has banned all transactions using cryptocurrency, meaning that the Chinese government does not support the development of cryptocurrencies that have been developing so far, and at this time when looking at the conditions of the cryptocurrency market are very apprehensive.

As far as I remember, such restrictions on transactions for financial organizations and banking structures on the part of the Chinese regulator have already acted before and now, it seems, on behalf of other structures, they just reminded me about it, so I personally do not see anything new in this and it is not clear about what development of the Chinese cryptocurrency market was discussed. As far as I understand, we are still not talking about a ban on the ownership of cryptocurrencies to individuals. Another question is that this appeal was made at the most inopportune moment, when the market is already hysterically reacting to any bad news after the body movements with tweets from Elon Musk and all this led to an even greater collapse of the exchange rate.

[Obito]

It will take over the world if they as a country took over the world, AFAIK China's Digital Yuan is only a digitized fiat currency which is just another means for the government to control their citizens, I have seen someone said it in this forum, it is the antithesis of bitcoin and I do agree because they took out the good parts of bitcoin and added surveillance as an added feature which is really invasive in my opinion.

[mu_enrico]

Nonetheless, we cannot deny China's ambitions in becoming the most powerful nation in the world. It's now the second-largest economy in the world, rivaling the United States in every way. The US Dollar is still the world's reserve currency, but we all know that nothing lasts forever. Some say that China will be able to "bypass" US sanctions with a digital currency of its own. Imagine what will happen in the future if the US becomes reluctant in launching its own "digital dollar" to the public. It'll become a laughing stock as other countries gain all of the advantage. Only then, China will rule the world becoming the biggest economic superpower with the "Digital Yuan". Just my thoughts

You watch too many CCP propaganda mate. China (country) is not as strong as you think. That's because communism always ends up hurting itself. Do you think overfishing, polluting the environment, sweatshop, etc. are a sustainable model? Nope, it will collapse. CCP's economy will collapse.

And CCP is not only rude to the US, but also the rest of the world. No way people will touch the Digital Yuan.

[Midy]

apparently not, because seeing the condition of the Chinese government which strictly prohibits transactions using cryptocurrency at this time, in this case the government does not want to support the development of cryptocurrency both now and in the future.