Digital Yuan: China Launches US Dollar Attack


Aggressive economic policy Washington led to the fact that now in China began to prepare for a "financial divorce" from the United States. Beijing received the first portion of sanctions "for Hong Kong", experts warn that their volume will only increase. Among the threats loomed his possible disconnection from the bank transfer system SWIFT. In Russia, such a prospect led to the development of its own alternative system of SPFS. What will China answer?


The problem is serious. Disconnecting China, the world's largest manufacturing economy, from SWIFT will lead to a global financial collapse. Beijing conducts its international business in dollars, and also abroad, it owns non-financial assets in the amount estimated at 2 trillion in the US national currency. It is believed that their denomination in RMB would remove some of the risks. China is convinced that the "internalization of the renminbi" is the key to the country's economic security and financial sovereignty.

Let's see what China did in the framework of this strategy.

At first, after the events of 2014, when the question arose about the possible disconnection of Russia from SWIFT, the PRC launched the national bank transfer system CIPS (China International Payments System) in 2015. The Chinese habitually borrowed proven Technologyeven improving them: in payments in RMB, costs are reduced due to the lack of the need to convert currencies and other operations.

Experts note that there is the possibility of connecting the Chinese CIPS with the Russian SPFS. If necessary, it can be deployed and used within the framework of the BRICS informal association, which together accounts for about 50% of global GDP.

Secondly, in 2016, the yuan was included in the basket of special borrowing rights of the IMF, which increased its status as a global financial instrument.

Thirdly, Beijing is actively promoting the idea of ​​a "digital renminbi" as part of the promising cryptocurrency of the People's Bank of China - DCEP (DC / EP, Digital Currency Electronic Payment). In exchange for the RMB denominated reserve, the People's Bank of China will charge its digital currency to commercial banks. Unlike bitcoins, this is an electronic version of the national currency of the PRC, provided by state reserves. Bank customers will be able to open wallets in banks and use the “digital yuan” for settlements between themselves at lower costs and a high degree of security, as this eliminates the risk of third-party sanctions.

This initiative has caused great concern in the US Federal Reserve. Anthony Pompliano, one of the cofounders of Morgan Creek, explained:

Regardless of whether this information is reliable, FED specialists must absolutely digitize the dollar.

In the American expert community, an article came out with a saying: "We sent a man into space, we can send a dollar into digital space." As part of this concept, The Digital Dollar Project has been developed to digitize the dollar. In addition, Facebook is promoting its own cryptocurrency Libra, which is theoretically capable of replacing the dollar and moving the “digital yuan”.

It can be concluded that currency wars are rapidly moving online. Pilot tests of the "digital renminbi" are already being held in four major Chinese cities, and the world presentation will take place at the 2022 Winter Olympics in Beijing.
Photos used: https://pixabay.com/
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  1. Dmitry S. Offline
    Dmitry S. (Dmitry Sanin) 28 June 2020 12: 44
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    The problem is that the digital dollar will also be an unsecured currency - can not we consider the US government debt in the same dollars as collateral for the dollar?
    1. Kristallovich Offline
      Kristallovich (Ruslan) 28 June 2020 13: 58
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      The problem is that the digital dollar will also be an unsecured currency.

      Non-digital dollar is also not provided with anything ...
      1. Alexzn Offline
        Alexzn (Alexander) 30 June 2020 08: 38
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        And it seemed to me that the unsecured dollar was backed by 70 secured rubles ...
        Maybe it's time to understand the nature of securing money? What does gold provide for?
  2. steelmaker Online
    steelmaker 28 June 2020 13: 05
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    ... also abroad, he owns non-financial assets worth an estimated 2 trillion in the US national currency.

    China is not going anywhere from $. Russia is buying gold. But this is also not an option.

    BRICS, which together account for about 50% of global GDP.

    And here you can refuse from $ and, for starters.
  3. gorenina91 Offline
    gorenina91 (Irina) 28 June 2020 13: 09
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    Digital Yuan: China Launches US Dollar Attack

    - Personally, I did not understand anything about the alleged "attack on the US dollar" ...
    - But China itself needs such a "digital yuan", of course ...- is needed ...
    - He will pay with these "virtual digits" with Russia ... - It's the same as paying ... mmmm ... ringing of coins ... - he shook the money; gave to listen to the ringing of coins ...- well ... ... and that ringing paid ... -Hahah ...
    1. Oyo Sarkazmi Offline
      Oyo Sarkazmi (Oyo Sarkazmi) 28 June 2020 13: 26
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      Quote: gorenina91
      He will pay with these "virtual tsiferki" with Russia ..

      These virtual yuan, with its own payment system - went to a neighbor, took or gave money. SWIFT - you are looking for a gypsy on the side, give him the money, he unfastens himself, and transfers it to your neighbor. Or it doesn’t transmit, but takes itself - sanctions !.
  4. gorenina91 Offline
    gorenina91 (Irina) 28 June 2020 13: 54
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    These virtual yuan, with its own payment system - went to a neighbor, took or gave money. SWIFT - you are looking for a gypsy on the side, give him the money, he unfastens himself, and transfers it to your neighbor. Or it doesn’t transmit, but takes itself - sanctions !.

    Well ... magicians ...- solid virtuals around ...
    - Brought one neighbor to the second neighbor a whole "timber truck" with the Russian forest; and poured him a whole ... barrel of Russian kerosene (oil); and pumped Russian gas from his own gas bottle ...- the second neighbor was satisfied ... - And when the first neighbor came to pay for all this from the second neighbor ... - then the second neighbor just squinted and began to draw numbers in the air with his finger ....- he drew a lot of those numbers ... - take, they say, dear neighbor, this "air money" ...- and now you and I are counting ... - Hahah ...
    - Well, the first neighbor began to be indignant ... - Like they say so !!! - Then the second neighbor squinted even more and ... and put the “minus” on the first neighbor ... - Well, the first neighbor then was in his arms, but rather run away from the yard of the second neighbor; and then the numerous relatives of the second neighbor jumped out ...- and even set the minuses to the first neighbor ... the first neighbor barely took his feet ... - And he rode past the gypsies on a horse ... I saw all this ...- so he laughed and rolled ... - But why not laugh ... since it was continuous ...- Hahah ... got it ... -Hahah ...
  5. Alexzn Offline
    Alexzn (Alexander) 28 June 2020 18: 37
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    So, apparently, I don’t understand how disbelief in a currency not secured by gold and faith in cryptocurrency provided by an algorithm can fit in one head. I can already imagine how countries are dumping dubious dollars, which are nowhere to be bought and starting to accumulate digital yuan, inflamed with confidence that has suddenly arisen.
    1. Oyo Sarkazmi Offline
      Oyo Sarkazmi (Oyo Sarkazmi) 29 June 2020 15: 32
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      People buy bitcoins for dollars, rubles, yuan. Although who wrote the code - even Saint Turing does not know. And what features was hidden by a single programmer who sells code for money in computer memory cells for money? Millions of dollars' cue ball disappeared many times, those who were robbed sit on computers and see how their former money is walking - and there is no one to file a lawsuit against robbery and fraud.
  6. Alexzn Offline
    Alexzn (Alexander) 30 June 2020 08: 34
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    Quote: steel maker
    ... also abroad, he owns non-financial assets worth an estimated 2 trillion in the US national currency.

    China is not going anywhere from $. Russia is buying gold. But this is also not an option.

    BRICS, which together account for about 50% of global GDP.

    And here you can refuse from $ and, for starters.

    Well, if you consider a swan, a cancer and a pike a unidirectional vector ...