5.5 C
December 5, 2022
Image default

Digital yuan is a threat to the dollar, says Matthew Graham Blocksats

Matthew Graham, a veteran from the investment banking market in China and CEO of Sino Global Capital based in Beijing, has analyzed what is known so far about the planned digital currency of the Middle Kingdom. He believes the Chinese government sees new technologies as something that will help him break the dollar’s dominance.

Matthew Graham: This is a great opportunity for China

Speaking to Boxmining founder Michael Gu at a Unitize conference on July 6, Graham said it is very difficult for China today to internationalize the yuan. Despite this, new technologies can help them in this:

“Swift, CHIPS, Fedwire […] they are outdated, they are expensive, they are slow. It is 2020 and we have transactions that take three days to clear and are much more expensive than they should be. All of these technologies, which form the basis of the global USD-oriented economy, really show their age. This is a big chance [dla Chin]”.

Gu added that China in the design of the new yuan “They borrowed a lot of technological elements from blockchain.”

Graham emphasized in his reply that the matter was more complicated. He said that “If it is approached [cyfrowego juana] from the perspective of cryptocurrency texture or blockchain “ hard “Will understand what it is and why it is so important.” In his opinion, new technologies integrated with the digital yuan, including aspects gained from blockchain, are used for another purpose. Gu quoted here the comment of the chairman of the China International Economic Exchange Center, who earlier said that:

“The digital yuan can collect real-time data related to issuing money, accounting, etc., providing useful information on providing money and implementing monetary policy.”

Graham added that in monetary policy a new yuan “Can be very useful in introducing negative interest rates.” Moreover, “Opens up many opportunities for artificial intelligence and machine learning in fraud detection.” He believes that it is worth comparing it with systems such as Fedwire, CHIPS, SWIFT – “hydraulics”, which is the basis of a large part of the global dollar economy.

There is an opportunity to jump forward – He said. – Digital yuan is not about Bitcoin. It is about the potential internationalization of the yuan, at least to some extent.

Related posts

Switzerland will not change tax law because of blockchain Blocksats

Aparnna Hajirnis

Fiat food? The Bitcoin Big Mac index drops below 10k satoshis- Webitcoin

Anupreet Kaur

Reddit MOON cryptocurrency now has real value |

Aparnna Hajirnis

Leave a Comment