Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.
China has been routing for the globalization of the Chinese yuan as a settlement and the reserve currency, eventually overthrowing the American dollar.
A podcast sponsored by CoinDesk suggests that China has softened its stance in regard to crypto. Some crypto pundits and observers had indicated that Chinas recent crackdown on crypto was just noise that would eventually quieten, and according to what’s on the ground, it’s actually coming to pass. A review of several reports from China’s state-owned media indicates that state authorities are preaching water and drinking wine. On one hand, they discourage The Chinese to stay away from all crypto-related activities and on the other hand, they’re the same people who own a crypto-related agency and even practice crypto trading.
What Fueled Crypto Crackdown in China?
The podcast presenter stated that China is in the midst of the tenth life trial for its forthcoming digital currency, the Digital Yuan, which is the biggest so far giving 200 yuan each, about 31 dollars, to 200K Beijing residents for a total spend of 6.3 million. China has been trying to entice fintech companies and incorporate them in the digital yuan landscape. Generally, Chinese authorities had to make cryptos less popular in China in order to make a way for the launching cum popularity of their CBDC, the digital yuan.
China has been routing for the globalization of the Chinese yuan as a settlement and the reserve currency, eventually overthrowing the American dollar. This would give China more control over its economy. This is reasonable owing to the fact that many central banks always keep a yuan amounting to $700 billion. Besides, the yuan is as stable as the US dollar. In the event that the yuan is declared the global reserve currency China would benefit in the following ways:
- More international trades will be priced in yuan and China would no longer need to worry about the value of the American Dollar.
- Each Central Bank around the world will be required to have yuan as their Forex Reserve.
- Chinese exporters would enjoy lower borrowing costs on their loans.
- China’s will outrank America’s “economic clout”.
- It would support Chinese economic reforms initiated by President Jinping.
Other Global Developments Related to Crypto
Leonid Volkov, the man who heads Alexei Navalny’s volunteer network suggested that they’ll take donations from supporters in form of cryptocurrencies. Alexei Navalny is a Russian opposition leader and activist who’s currently languishing in prison. Addressing supporters via video, the network leader said that despite the continual repression on Leonid, they’ll fund him and keep up with their work.