China's digital yuan could be a big problem for the US dollar

China is ahead of the US in innovative online money, which casts doubt on the dollar's status as an international money reserve, according to CNBC.

Now about 80 countries, including China and the United States, are in the process of developing CBDC - the digital currency of the country's Central Bank. This is a form of money, it is regulated, but it is on the Internet. Beijing has already launched its digital yuan, while Washington remains focused on research.

In the United States, these studies are carried out by two structures - the Digital Currency Initiative at the MIT Media Lab (Massachusetts technological Institute) and the Federal Reserve Bank of Boston. They are studying what the new digital currency should look like and how people will relate to it.

Confidentiality is the first and very big problem, so experts are watching the development of the digital yuan in China. According to Neha Narula, director of the Digital Currency Initiative at MIT Media Lab, privacy will be an extremely important issue when launching the digital dollar.

The second challenge is access. According to polls, 7% of Americans do not use the Internet. For black Americans, the figure is 9%, and for Americans over 65, it is 25%. People with disabilities are 3 times more likely than healthy people to say that they do not use the Internet.

CBDC will coexist with conventional money. Therefore, people can use physical money if they want.

- added Narula.

At the same time, Darrell Duffy, a finance professor at the Stanford Graduate School of Business, believes that the main idea of ​​the digital dollar should be to continue the monetary leadership of the American currency on the planet.

The digital yuan is the biggest threat to the West that we have faced over the past 30-40 years. It allows China to export its digital authoritarianism

- said Kyle Bass of Hayman Capital Management, considering the digital yuan insidious, summed up the media.
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  1. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 25 July 2021 20: 23
    Digital currencies are created by everyone who is capable of it.
    After the “dropout”, there will be three main ones - the dollar, the euro, the renminbi and several regional ones - the Russian ruble, the Indian rupee, possibly the real of Iran and several others.
    I think the issue of securing digital currencies is a return to the gold standard, which is being bought by all the central banks of the world with a few exceptions, and the IMF plans to change the rules of its trade, and there are good reasons for that.
  2. beeper Offline beeper
    beeper 25 July 2021 20: 28
    What is it ... the American is "NOT cool", then the Russian will do quite well! smile
    1. alex5450 Offline alex5450
      alex5450 (Alex L) 26 July 2021 12: 17
      Shall we sell our elder brother a little more wood and oil and pay off? Or, on the contrary, will we earn "digital yuan"? To buy something from China with them?
      1. beeper Offline beeper
        beeper 26 July 2021 19: 56
        hi The Volens-Nolens authorities of the Russian Federation (unless, of course, they are afraid of the wrath of "respected American partners") will soon have to operate with the "digital yuan". On sub-Chinese "Asian markets" (after all, the "digital ruble" is unlikely to "ride" there).
        1. alex5450 Offline alex5450
          alex5450 (Alex L) 26 July 2021 20: 19
          That is, in fact, China will introduce a digital token so that partners do not walk to the side. "Everything in the house."
          1. beeper Offline beeper
            beeper 26 July 2021 21: 22
            hi Well, are there any corresponding, at least "pan-Asian" ambitions of Beijing ?! winked
            Although, it seems that Ankara has its own “pan-Turkist” views on those “markets” ...
            I absolutely DO NOT worry about the fate of the "digital dollar" or "ts.yuan" - let each other pretty much "beat up"!
            I'm a hopeless romantic - For the "digital ruble" on a global scale!
            1. alex5450 Offline alex5450
              alex5450 (Alex L) 27 July 2021 07: 33
              Then you need to wait for the oil price to rise four times. Then the "digital ruble" will flourish. Maybe.
  3. 123 Offline 123
    123 (123) 25 July 2021 20: 40
    Fidgety winked
    But the yuan is not the only one, the EU and Russia do not sleep either. There are also "pioneers" Iran, the Caribbean countries and further, further, further ...
    It looks like the white fur-bearing animal is preparing to migrate to the North American continent.
    TANKISTONE (TANKISTON) 25 July 2021 23: 41
    Americans will cover everyone with satellite Internet, introduce virtual sanctions against other virtual currencies, the Fed will be converted to digital, and the whole world will no longer physically feel their candy wrappers with their hands, but virtually - quite! And everything will return to normal ...
    1. alex5450 Offline alex5450
      alex5450 (Alex L) 26 July 2021 12: 19
      It is important to me that you seriously overestimate both the role of digital currencies and satellite Internet (which has been in the afternoon for many years).
    2. Bulanov Offline Bulanov
      Bulanov (Vladimir) 27 July 2021 13: 46
      One decent solar flare with a magnetic storm of 9 points and the whole figure will fly into the unknown. Real gold will remain. Here they will buy and sell on it. Maybe for silver and platinum.