Phillip Gillespie from B2C2 Japan spoke with Bloomberg about the potential threats to the cryptocurrency market. In his opinion, China’s plans are primarily dangerous for Bitcoin and other blockchain currencies. The Middle Kingdom wants to issue digital yuan. This can have dire consequences for BTC.
Phillip Gillespie: This digital yuan is a threat to Bitcoin
The CEO of B2C2 liquidity provider Japan told Bloomberg that as soon as China issues its central bank digital currency (CBDC), the country could also quickly curb the cryptocurrency market.
– Introduction [na rynek] digital yuan will be one of the biggest threats to cryptocurrencies – He said.
Gillespie says potential new regulations that China may introduce will hit “enormous liquidity “ coming from the Chinese market. What limitations are we talking about? In his opinion, for example, a ban on Tether (USDT) is realistic, which could not be used on the regional cryptocurrency market.
It is worth noting that this is not just an abstract idea. For example, the conversion of yuan into tokens or cryptocurrencies is already prohibited in China, for example. Chinese citizens, however, use the dollar-tied Tether stablecoin as a tool to circumvent this obstacle. So USDT helps them trade Bitcoin and other digital currencies.
Gillespie believes that this gate may close soon. Effect? It’s not hard to imagine it. A huge liquidity shock may occur, which will drastically reduce BTC trading on exchanges.
– What would happen if there were mass panic and a sell-off? – asks the expert.
Nothing to worry about!
However, the CTO of Tether Paolo Ardoino, who downplays the potential impact of CBDC on stablecoins, is of a different opinion.
– Tether’s success was ensured by the CBDC action plan. Furthermore, CBDCs are unlikely to be available on public blockchains such as Ethereum or Bitcoin – argues.
In the background, however, advanced work is underway on the e-yuan. In October, the Chinese digital currency reached another milestone. 2 billion yuan has already been sent through its network. Living organism tests are conducted in several cities in China.