China is ready to roll out 1rst major centrally backed cryptocurrency. We are way behind & this is a
very serious threat to our economic perch. In fact, this is possibly the biggest threat out there to it.
Link: https://www.wsj.com/articles/china-creates-its-own-digital-currency-a-first-for-major-economy-11617634118
Replies to: China is ready to roll out 1rst major centrally backed cryptocurrency. We are way behind & this is a
Nope will never happen. I would short anything China does on the international stage.
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Geeze
I can think of about 100 things that are greater threats to our ‘economic perch’ than this.
This is a big deal, but Lance referenced end days. We need to get going.
It is the future, and we are behind.
Looks like a digital currency tied to the Yuan & controlled by PRC cBank, not a cryptocurrency.
All transactions will be tracked and processed by them...they have basically created a PRC Diners Club Card for the Yuan.
I can't wait until they get hacked. I hope the NSA is working on this as we speak.
If the US implements something like this, I do wonder whether it could destroy a substantial portion of the business of VISA and MasterCard. It certainly could transfer a lot more control on what can be purchased from private hands to government hands, since the Fed might be able to code transaction controls or otherwise halt unapproved purchase (or make it even easier to cease assets).
This does have to be carefully done by the US, if at all. There are existential implications for general freedoms...which, no doubt, China understands. But, we US citizens are more and more willing to surrender privacy for convenience. Which makes me believe that we are headed to a Brave New World dystopia instead of a 1984 dystopia.
The dollar index is at the high for the past year and has rallied over 11%.
The Euro, yen, pound, etc are all trading like garbage compared to the buck.
I don't really see what a digital currency gains anyone in a well-banked economy. How is it better than a debit card loaded on your Google or Apple Pay? Meanwhile, you can load a credit card on there and earn cash back.
The number of hacks in the cryptocurrency arena are really breathtaking. Good luck to China in protecting against that.
Maybe the blockchain will amount to something in the distant future. But, for now, I don't think we need to worry about it.
Yeah. The hacks are of exchanges, not the cryptocurrency itself. The PRC just made an exchange.
Dollar doing well because the market expects what, 2% increase in rates by July?
Correct, it is intended for the domestic market.
At least at first.
And nothing says decentralized currency like using one controlled by a centralized, authoritarian government.
It does raise interesting issues.
Local gas station gets tired of inflated US dollar, and starts accepting payments in digital pounds or digital yuan. Foreign currency could become more accepted in US transactions, just like the USD is accepted in many countries in Latin America...only you don't need the actual physical cash.
I haven't thought all this through. Interesting issue, though.
That's a pretty advanced local gas station.
It's surprising that they're only local considering how forward thinking they appear to be.
Ever heard of an app?
If the currency is widespread, able to be used, and offers a better value, it’s doable.
But that is kind of the point. Digital currency will become accessible to all. It is digital.
No doubt there will be companies who will provide the apps to access the digital yuan...hell, the PRC might even provide it.
You won't have to go to a bank with physical USD and pay them a hefty fee to exchange the paper USD for paper Yuan.
I don't see it happening except possibly during a financial crisis, but I suppose you never know.
It's available right now.
60 Minutes did a report a few weeks back about some town in Central America that is using Bitcoin. I think it was in El Salvador but that might be wrong. Some elderly woman cooking empanadas or something was taking bitcoin.
El Salvador (the entire nation) accepts Bitcoin as legal tender.
If people want something less volatile, the would have to go with a tethercoin (e.g., a cryptocurrency tied to the USD) or a digital currency (like the digital Yuan or digital Pound).
This was before their corrupt president made that official.
But it doesn't change that anyone can accept it now. They wouldn't for a variety of reasons, not the least is that John Doe filling up his tank won't have it.
Right. John Doe takes the easy route, until it becomes too costly. Then he chooses next best option.
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That's right, I forgot about the hyperinflation in your scenario.
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I'm certainly not going to bet against the dollar...but I'm not above hedging a small portion.
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Worse than that, the days of the Dollar as World Reserve Currency are numbered..Reason: profligacy-
--and the use of SWIFT as a weapon by the United States. What country is going to keep assets in US Dollars if they can be stolen or frozen at the whim of the US Govt? Numerous countries including the BRICS are formulating bilateral agreements to circumvent SWIFT and as they do the need to hold assets in dollars will continue to diminish.
Heard a great exposition on this - we have not prioritized it until very recently. We're yrs from a
roll out of our own.
This is the first of the major currrency markets to do so.
The First Mover Advantage could prove very significant - esp if they have years to play with.
I think legal entities should be hesitant to allow the PRC to hold their money for them.
Bitcoin or Ethereum are far safer.
Who knew the end is so near?
I'm going to go buy a bunch of canned food for the end of days.
Probably nick some off Chris. He predicted doom and gloom every day of the Trump presidency.
None of it came to pass, mind you. Probably got loads of tinned corned beef and the like.
So, you think the USD will remain solid forever?...or just beyond your lifetime?
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So dramatic...always.
Several countries have rolled them out and we're 1 of about another 80 or 90 that are in the development process. A report from the Fed about this was just recently released.
IIRC, China has also banned other forms of crypto which has allowed us to make up or even surpass them in mining and other areas.