The world is in a financial war and China is winning. China’s digital yuan, also known as DCEP (Electronic Currency Electronic Payment), will soon be used worldwide. The People’s Bank of China is one of the most advanced central banks in the world. Because of this, it has made progress on digital currency while the US Federal Reserve appears to have not.
And now that Donald Trump and his politics from “America First” were defeated although the count is still ongoing and legal proceedings are pending over the results, China’s supremacy in the field of digital currency is assured.
Joe Biden hasn’t outlined a clear technology policy, let alone a digital currency policy. This will give China the opportunity to develop its leadership position in the digital currency race. Maintaining America’s position as a world superpower is nowhere on Biden’s agenda. In 2015, as Vice President, Biden once came across China:
“To the hope and expectation that our great-grandchildren will look back 50 years from now and tell the beautiful story that we wrote together.”
In 1979, Biden traveled to China as a junior senator after President Richard Nixon normalized relations between the United States and China. During his visit to Sichuan University as Vice President of Barack Obama in 2011, he mentioned:
“I believed and said it in 1979, and I now believe that an emerging China is a positive development, not just for the people of China, but also for the United States and the world in general. An emerging China will promote economic growth and prosperity, and will focus on a new partner with whom we can jointly tackle global challenges. “
Meanwhile, China is making strides and introducing the world’s first digital currency.
After the announcements, The government of Biden and Kamala Harris is focused on coronavirus, racial equality, and climate change. Named in his US foreign policy and leadership plan “The Example of American Power: The Biden Plan to Lead the Democratic World to Meet the Challenges of the 21st Century”, the word “digital” does not even appear. In addition, Biden has long been associated with China and has long been committed to helping its industrialization and growth become world leaders. When asked by a journalist from National Public Radio whether he would keep Trump’s tariffs for China as President, Biden replied with a loud “No”.
The Chinese yuan becomes the dominant world currency through the DCEP. The DCEP will be successful not only thanks to the future-oriented PBoC, but also thanks to the fact that more than 12 million Chinese live outside of China. In fact, 2.5 million live in the United States. They could introduce the digital currency and spread the yuan around the world.
With your help, the Chinese yuan can be converted into an international currency. When the Chinese yuan is used by these people around the world, the Chinese currency can outperform US monetary sovereignty.
The current situation was possible thanks to the COVID-19 pandemic, which has increased reliance on digital services. As tensions rise in the United States, China could divert global influence. While the Federal Reserve has experimented with distributed ledger platforms to understand their potential benefits and tradeoffs, apparently it hasn’t made a final decision to adopt this currency.
Jerome Powell, The chairman of the Federal Reserve said that The U.S. government isn’t particularly concerned about the pace of development of a central bank digital currency. Anthony Pompliano, co-founder of Morgan Creek Digital the alarm sounded about this sloppy approach.
Powell explained the slow efforts of the United States:
“We did not choose to issue a CBDC and believe that there is still a lot to be done.”
Powell suggested that properly developing a CBDC was more important than winning the digital currency race. China is now making headway. Pompliano sees this as an existential threat to the US dollar. “They talk about it, maybe we can do one in the next few years.”Pompliano said of Powell’s recent comments on CBDCs. “That’s not a thing for the next few years.” Added:
“This is something that is happening right now, and if they don’t act, the United States will fall way behind China because it all boils down to accessibility.”
Pompliano said that access to a digital fiat currency will determine the winner of this new frontier in fintech. “”If I am anywhere in the world and I can use the internet connection and I want global currency, can I get a yuan or the dollar? “
Pomp is right. The relevance of the US dollar is at stake. But the time is late, maybe too late.
The views, thoughts, and opinions expressed herein belong solely to the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Alex Zha He is Director of Global Operations at MXC Exchange, a comprehensive provider of cryptocurrency services. Before joining MXC, he gained experience at OKEx as a Senior Global Marketing Manager. Alex is a veteran in the cryptocurrency and blockchain industry and an accomplished marketing and operations specialist who believes that blockchain and cryptocurrencies will usher in the era of modern financial inclusion. He holds a Masters degree from the National University of Singapore.