China launches digital Yuan

about 3 years ago

China seems to be a first in everything that has to do with tech and innovation in this financial game.

Their launch of the digital Yuan has placed them in a position where they can, in theory, dissociate themselves from the global dollar-dominated economy.

Data privacy

Owing to this move, China will be minting a digital version of its currency, making it even easier to track the movement of money in the country.

In a country where privacy barely exists, this move will further increase surveillance of financial activities in the country.

So in essence, you're going to get the "crypto" experience, but without the privacy and the anti-fiat sentiment since it is just Yuan minted by the Central bank.

What's the point?

I don't understand these digital currencies and I don't see why people should use them.

If you're creating a currency run by the Central bank that crypto hodlers are trying hard to distance themselves from, doesn't it just make it redundant?

I mean, it's cool that you're using blockchain technology and everything but I really don't see the difference between CBDCs and the infrastructure that currently exists.

For China and other countries in advanced stages of digital currency deployment, it creates a local bubble of sorts that will retain value within the system. That's fundamentally a good move for the country and one that will help their economy in the long run.

However, that's all the good you could realistically derive from digital currencies. For a country like China, this just translates to more surveillance, data breaches, and a strengthening of the stranglehold that the government has on the peoples' lives.

If you don't care about privacy, and don't mind being tracked all the time, you're going to absolutely love the convenience it provides. However, if you're like the traditional crypto investor who wants a safe place where Government doesn't overly influence your life, then the digital Yuan might not be for you.