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Is the electronic yuan an answer to Libra?

China cryptocurrencies - Is the electronic yuan an answer to Libra?

If up to now many have thought of electronic yuan as an attempt to undermine the imperial power of the dollar, now comes a quite different point of view, which seems to shed new light on CBDC Chinese.
According to this version, in fact, it would be one real response to the expected launch of Pound. Facebook's digital currency, in fact, would have been immediately seen by Beijing as a tool capable of making its way even in the Asian giant. A real danger, therefore, considering the relationships between China and the United States in recent times.

Kim Jong-han's claims

It was these surprising statements Kim Jong-han, a researcher working at the Korea Institute of Finance , an important economic study body.
Then adding in support of his claims that the digital yuan, currently being tested in five major metropolitan areas of the country, it had a significant acceleration just when the Libra White Paper was published. As evidence of the considerable fear triggered in China by Mark Zuckerberg's virtual currency.

Will China's aid support the spread of the digital yuan?

Another interesting statement by Kim Jong-han is then that relating to the Chinese CBDC will be used in cross-border tradegoing to replace the US dollar in many international agreements.
The shrewd policy of aid provided by China during the pandemic will also favor this evolution coronavirus, as the countries that have received humanitarian aid from China they are likely to be more likely to adopt the digital yuan.

A thesis married by Bloomberg

It should also be stressed that the thesis in question was also advanced by Bloomberg, in a recent article signed by Andy Mukherjee.
According to the editorialist, in fact, the intention to increase its financial influence, with the precise aim of creating a global regulated network for convenient retail payments, advises Beijing's moves. Naturally dominated by its virtual currency.
If, however, until recently, almost everyone believed that the real target of Beijing was the US dollar, in fact the thesis that would move it to Libra would have its own logic. The Chinese CBDC would in fact be an attempt to shift competition in the area of ​​new technologies, where he would not have an adversary for a digital dollar of which there is still no trace, but Libra.

An advantage for Libra?

If what Kim Jong-han and Andy Mukherijee said were true, however, the attitude of US policy towards the creation of Facebook could also change. Why leave China free in an industry that is becoming increasingly important, hindering Pound? At least while waiting for the United States to decide to move in the direction of a digital dollar, the possibility of placing an obstacle to Beijing's increasingly imperious advance in the digital economy could be identified in Mark Zuckerberg's digital currency.
All that remains is to wait for the next developments, to understand if the orientation of the stars and stripes policy towards Libra will change, also taking into account the fact that in recent months, relaxing signals have arrived from Menlo Park towards the same.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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