‘Chinese Invented Paper Money and They Will End It’- Brazil’s Far-Left Praises Digital Yuan – Finance Bitcoin News
One of the more interesting developments in the ongoing trade tensions between the US and China is that China is about to launch its own digital version of the yuan. The cryptocurrency launched on the Ethereum network at the beginning of March, set to be used to pay for goods and services. The digital currency is referred to as a “stablecoin”, which aims to maintain a constant price – unlike regular crypto tokens, which are highly volatile.
The Yuan isn’t the only currency that’s getting a boost from a government. Brazil’s far-left government is following China’s footsteps, as it begins to experiment with blockchain technology. The government of Brazil is now operating on a new version of the Yuan, called the Digital Yuan. This is how Brazil’s Finance Minister, Henrique Meirelles, introduced the currency:
Whatever you think about the digital yuan, you have to admit that China is leading the way when it comes to blockchain technology and cryptocurrency. They already have the world’s top digital currency (the Bitcoin), and they’re close to having their own equivalent of the U.S. dollar (the digital yuan).
Digital currencies, especially those issued by central banks, have been hailed as disruptive. The praise comes from a publication affiliated with a far-left party in Brazil. A recent article argues that CBDCs, such as China’s digital yuan, could dramatically change global financial and governmental policies.
The digital yuan will free America from exorbitant privileges
Vermelho, a news portal affiliated with the Brazilian Communist Party, notes that the People’s Republic is the first major economy in the world to create its own currency. Government-issued digital coins are not comparable to modern electronic money because they do not require the mediation of commercial banks, the left-leaning newspaper said. This role would be fulfilled by the central bank itself, unlike private cryptocurrencies like bitcoin, where no single authority can monitor transactions or control circulation. Digital central bank currencies (CBDCs) will provide a direct link between the monetary policy regulator and the public. According to Vermelho, governments will be able to transfer money directly to their citizens, either as emergency aid, as during the Covida crisis, or as part of regular minimum income programs. The article also suggests that the main effect of these currencies could actually be geopolitical, claiming that the digital yuan could end the exorbitant privilege of the United States and the global dominance of the dollar. The website claims that approximately 88% of international financial transactions, whether trade or investment, are now conducted in US currency. According to the IMF data cited, it accounts for 93% of China’s imports and 95% of its exports.
Attention: Govcoins may become a panopticon
Currently, most international transactions go through the U.S. banking system in one way or another, and global finance costs about $350 per capita, according to the Red’s website. However, the time when today’s electronic money and paper money will be a thing of the past is not so far off: China is already testing the digital yuan with 500,000 consumers in 11 different regions. As Vermelho says: The Chinese invented paper money thousands of years ago. They’ll probably go all the way. Despite a quote from The Economist that more than 50 monetary authorities are exploring this possibility, the CBDC edition, Vermelho has not presented its readers with another important statement from the newspaper, notes Brazilian crypto news portal Portal do Bitcoin. New government-issued digital currencies could become a panopticon (a term synonymous with pervasive surveillance) that allows governments to monitor citizens, a leading business newspaper warns. By vigorously promoting the digital yuan, the People’s Republic has repeated previous restrictions on the provision of decentralized cryptocurrency services. Chinese authorities have also promised to continue to monitor bitcoin mining and crack down on crypto currency trading. While these old threats do not constitute a major new offensive against the uncensored digital currency, they have certainly plagued the crypto-currency markets in recent days, proving that a confrontation with the CBDC is still just around the corner. How about digital currencies from central banks? Share your thoughts on this topic in the comments section below.
Banks, Brazil, CBDC, central banks, China, commercial banks, Communist Party, cryptocurrencies, digital currencies, digital yuan, dollar, global finance, IMF, mining, monetary policy, currency, regulators, trade, Vermelho Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.In the past week, Brazilian far-left politician, Guilherme Boulos, praised China for creating a digital currency, the Yuan, which will soon be introduced to the rest of the world. In a recent interview, Boulos was asked to elaborate on his views of the Yuan and the role it will play in the future. He noted that he feels the Yuan will end paper money, and that this is a good thing since paper money is the reason why millions of people in the world lack the financial freedom that is enjoyed by those in the developed world.. Read more about new cryptocurrency and let us know what you think.
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