The world is in an economic war and China is winning. The Chinese Digital Yuan, also known as Digital Currency Electronic Payment or DCEP, will soon be used worldwide. The People’s Bank of China is one of the most advanced central banks in the world. For this reason, it is pushing forward on the digital currency front, while the US Federal Reserve does not appear to be doing so.
Now that Donald Trump and his America First policy have been defeated, China’s digital currency dominance has been confirmed.
Joe Biden has not formulated a clear technology policy, let alone a digital currency policy. This will give China an opportunity to increase its lead in the cryptocurrency race. Maintaining America’s superpower status in the world is nowhere on Biden’s agenda. Back in 2015, while serving as vice president, Biden made a toast to China:
“To the hope and expectation that great-great-great-grandchildren in 50 years’ time will look back and tell what a wonderful story we wrote together.”
In 1979, Biden went to China as a junior senator after President Richard Nixon normalized relations between the United States and China. During his visit to Sichuan University as Vice President of Barack Obama in 2011, he stated:
“I believed in 1979 and said so, and now I believe that a growing China is a positive development not only for the people of China, but for the United States and the world at large. A growing China will promote economic growth and prosperity and become a new partner with whom we can tackle global challenges. ”
Meanwhile, China is moving forward with the world’s first digital currency.
Related: Digital Cold War? The United States and China are fighting for blockchain supremacy
According to the ad, the Biden administration and Kamala Harris’ attention to coronavirus, racial similarity and climate change. In foreign policy and the plan of the US leadership, which he called “An example of America’s power: Biden’s plan to bring a democratic world to solve the problems of the 21st century”, the word “digital” never appeared. In addition, Biden has long-standing ties with China and has always supported its industrialization and growth to become a world leader. When a National Public Radio journalist asked him if he would keep Trump’s tariffs on China as president, Biden replied, “No.”
Thanks to the DCEP, the Chinese yuan will become the dominant global currency. DCEP will succeed not only because of PBoC’s foresight, but also because of the fact that more than 12 million Chinese live outside China – in fact, 2.5 million live in the United States. They can accept digital currency and spread the yuan worldwide.
With their help, the Chinese yuan can become an international currency. If the Chinese yuan was used by these people around the world, the Chinese currency could overcome the monetary superiority of the United States.
About the topic: The central bank’s digital currencies are dead in the water
The current situation was made possible by the COVID-19 pandemic, which has led to increased dependence on digital services. As tensions rise in the United States, China may emit global influence. While the Federal Reserve has experimented with distributed ledger platforms to understand the potential benefits and compromises, it appears that it has not yet made a final decision to adopt such a currency.
On the topic: China and the United States should learn from each other and work together on CBDC currencies.
Jerome Powell, chairman of the Federal Reserve, said the US government is not particularly interested in speed in developing a central bank’s digital currency. Anthony Pumplano, co-founder of Morgan Creek Digital, sounded the alarm over this ruthless approach.
Powell explained the slow pace of action in the United States:
“We have not yet decided on a CBDC release, and we think there is still a lot of work to be done.”
Powell suggested that it is more important to build the central bank’s digital currency law than to win the digital currency race. Meanwhile, China is moving forward. Pomplano sees this as a real threat to the US dollar. “They say, ‘Maybe we can build one in the next couple of years,'” Pompigliano said of Powell’s recent comments to the CBDC. “This is not an issue for the next two years.”
“This is relevant at the moment, and if they do not act, the United States will be far behind China, because it is about access.”
Pompigliano said that access to digital currency will determine a winner ahead of new financial technology: “If I sit anywhere in the world, I can use an internet connection and want a global currency, can I get yuan or dollars? ”
Al-Baha is right. The stick of the US dollar is at stake. But it’s too late – maybe it’s too late.