The proposed launch of a Central Bank Digital Currency (CBDC) known as the digital yuan by China continues to be a hot debate topic within and outside the Asian nation. The country believes that the digital yuan, which should not be mistaken as a cryptocurrency, will positively impact its fortunes, as it will come with so many benefits for its citizens.
They have also begun testing the CBDC in many cities across the nation as citizens await its official launch date. However, Paypal Owner- Peter Thiel wants America to be concerned about how the Asian nation is trying to change the world’s financial outlook with its strategic approach to a digital currency.
Thiel believes the digital yuan will not cause a problem on its own
Speaking at an online seminar yesterday, the Venture Capitalist believes that China is likely waging a secret war against the U.S with Bitcoin. Thiel believes that Bitcoin is a massive threat to fiat currency, and China is all the boost the digital asset needs to threaten the U.S dollar. When quizzed on his thoughts about the Asian country’s launch of a digital currency, Thiel expressed his lack of optimism about the digital yuan, as he believes that it will likely have no impact on the U.S dollar as much as Bitcoin.
The Paypal founder believes that, should China ever reserve their digital yuan in Bitcoin, it will cause a financial imbalance between both countries. He, therefore, believes that, if that is ever possible, then the U.S deserves to question the Asian nation. The words of Thiel have come as a shock to many who know the Paypal owner as a Pro-Bitcoin maximalist. The Paypal owner believes that Bitcoin will continue to offset the value of fiat currencies like USD, and as such, he believes that is a future monetary policy threat.
Pompeo believes China will be the biggest beneficiary of the digital yuan
Also speaking at the event was U.S former Secretary of State- Mike Pompeo, who believes that the digital yuan’s impact on China and its economy will be massive. Pompeo agrees with the lawmakers of the Asian nation, who believe that they will oversee their financial affairs properly with the launch of the digital yuan. However, Pompeo is not upbeat about the digital currency’s cross-border transaction capabilities, as he believes it will always be a stumbling block.
However, he expects that when the currency eventually launches, the country’s financial regulators will discuss how it will trade-off with regulators of other nations. However, there are rumors that China has been trying to incorporate their digital with that of a few nations considering the possibility of a digital currency. Unfortunately, the U.S will not be on that list, as the nation’s top financial players believe the country is not exploring the idea of a central bank-backed digital currency at the moment.