As you know, the China has long since put in place a state cryptocurrency, with which it would start even more decisively on the path of innovation. The Chinese CBDC has long since entered the testing phase and according to many analysts, its debut on the financial markets is not far away.
The Beijing government's decision appears to be the best possible response to the concerns expressed by many national and supranational institutions in the face of the announcement of Pound, Facebook's virtual currency. It also confirms the intention of the China to move ever more decisively on the path of the digital economy, with the clear intent to limit the imperial power of the dollar. A real declaration of war that the United States does not seem to have understood for now. Unlike others.
Japan is worried about China
If the United States doesn't seem willing to respond to Beijing, the Japanese government may instead decide to do so in the near future. It is precisely the concern about the effects that the Chinese Central Bank Digital Currency (CBDC) could have on the existing power relations that pushed him on this path.
In particular it was Kozo Yamamoto, Chairman of the Banking and Financial Research Commission of the Japanese Liberal Democratic Party, to say that the country should launch a digital yen within two to three years, at most.
Yamamoto's words are explained precisely by referring to the decision by which China is embarking on the path of a state cryptocurrency. Self Beijing launched his briefly, without finding answers from his competitors, it could expand its influence enormously, especially on emerging countries. A hypothesis that Tokyo seems to see with great concern.
Precisely in line with this concern, Yamamoto therefore calls for the rapid development of a digital yen. However, it remains to be seen whether the Japanese government is ready for the hypothesis e if the accumulated delay is not already too deep. Indeed, it should be remembered that China has been testing its virtual state currency for at least five years.
The war between China and the United States
Because China now seems willing to focus on digital assets with all its strength blockchain? The reason is to be found precisely in the fact that now the eastern country is openly aiming to replace the United States as a leading country on a global level. And one instrument of this strategy could be the new stablecoin of the PBoC (the Chinese state bank). He is entrusted with the task of putting an end to the imperial power of the dollar, which is at this moment the weapon that allows the US to continue to present itself as a global beacon, despite the fact that clear signs of the ongoing decline are beginning to be noticed.
In this real war between China and the United States it remains to understand the role that can be played by Pound. If the Zuckerberg project were to be postponed or even blocked, real highways would open up for Beijing in an increasingly important sector such as fintech. If it were to leave, however, the problems for the dollar could prove even greater, given the immoderate ambitions spelled out in the Libra White Paper.