Digital currencies, especially those issued by central banks, have been lauded for their “disruptive nature”. The accolades come from a publication associated with one of Brazil’s far-left parties. A recently published article claimed that CBDCs such as China’s digital yuan can fundamentally change global finance and government policies.
Digital yuan will end America’s ‘excessive privilege’
Vermelo, a news portal associated with the Communist Party of Brazil, states that the People’s Republic is the first major economy in the world to have made its coin. Left-wing outlets argue that state-issued digital currencies are not like the current “electronic money” because they would not require the intermediation of commercial banks. Unlike “private” cryptocurrency like bitcoin, the central bank itself will play this role, where no authority can control the transaction or control the circulation.
Central bank digital currencies (CBDC) Will provide an immediate relationship between the monetary policy regulator and the public. Governments, Vermelo notes, will be able to transfer funds directly to their citizens, either in the form of emergency assistance, such as during a covid crisis or as part of regular minimum income programs.
Article It also means that the main impact of such currencies may actually be geopolitical, suggesting that the digital yuan may end the US’s “excessive privilege” and global dominance of the dollar. The site emphasizes that approximately 88% of international financial transactions, both in trade and investment, are currently denominated in the US currency. According to IMF quoted figures, this applies to 93% of China’s imports and 95% of its exports.
Warning: Govcoins can become Panoptic
According to the Red website, most international transactions now pass through the US banking system at one point or another and the cost to the global financial industry is an estimated $ 350 per capita of the world’s population. However, the moment when today’s electronic money and paper cash has become a thing of the past, China is already testing the digital yuan with 500,000 consumers in 11 different regions. As Vermelo says:
Chinese invented paper currency thousands of years ago. Maybe they are ending it.
Despite the release of the CBDC, Vermelo failed to acquaint its readers with another important claim made by the newspaper, citing economists as “more than 50 monetary authorities … are exploring this possibility”, Brazil. K crypto news outlet portal Du Bitcoin watched. The new government-issued digital currency has the potential for the state to become “panoptic (a term that refers to ubiquitous surveillance) to control citizens,” the leading trade daily warned.
Actively promoting Digital yuan, The People’s Republic has reiterated the previously imposed restrictions regarding the provision of services related to decentralized cryptocurrency. Chinese officials have also vowed to continue monitoring bitcoin Digging And action on crypto trading. While these old threats do not represent a massive new attack against uncensored digital money, they have certainly hurt cryptocurrency. market In the past, proving that a confrontation with CBDC is always in the corner.
What do you think about the central bank’s digital currencies? Share your thoughts on this topic in the comments section below.
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