Brace yourselves! China recently released its digital currency “Digi-Yuan”. This game changer is a huge threat to the USD.
Unlike Cryptocurrency, Digital Currency is backed by the government, regulated, and fully traceable. The threat to the USD lies in China’s goal to make this digital currency available globally. That means more countries can use its currency for digital transactions, it's also a potential loophole for countries experiencing multilateral and US sanctions. To combat this, the US is currently discussing its own creation of a central bank digital currency (CBDC). A China Briefing release stated in 2020 the Digi-Yuan may not be available until 2025.
The Future
Could this be the golden ticket emerging markets have been waiting for? If modeled correctly, countries that have been pillaged for resources like the Democratic Republic of the Congo can position themselves to become economically liberated with a natural resource backed digital currency.
Coinbase, the leading cryptocurrency trading platform also went public this week and is now worth over $300 per share. Is it a coincidence they released their IPO the same week talk of the Digi-Yuan surfaced? I can’t say for sure, however, I don’t believe the Digi-Yuan will threaten the existence of cryptocurrencies because there will always be a market for untraceable transactions with little to no government intrusion.
Photo taken from CNBC.com Sheldon Cooper | SOPA Images | LightRocket via Getty Images
What are your thoughts on the new age of currency and trading?
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