Tit for tat. This is what happens when you try to be funny when it comes to banning something to further your own agendas. You remember China? The country that loves to “ban” everything they don’t agree with? Well they did ban their citizens from owning cryptocurrencies. I am not too sure how they are going to enforce it but they did ban it. And just recently they ban crypto mining as well. That lead to the exodus of miners out of China to other countries. And the most probable reason why they did it? Well it is not too surprising to those who have been reading the news recently but it is most likely due to the Chinese Digital Yuan. China’s own digital currency which is completely regulated by the Chinese government and is very different from most cryptocurrencies projects. The Chinese Digital Yuan is very much centralized and easily controlled…by the Chinese government. I am not really into politics and all that but this does not sound that good to me. I certainly don’t want my transactions and financial history to be an open book to the Singapore government, let alone a foreign government right? And who knows what kind of stunt these governments will pull?
Anyway we know that the Chinese government did try to ban cryptocurrencies even though cryptocurrencies benefitted greatly for a good number of Chinese companies and businesses. And now that the Chinese government has their own Central Bank Digital Currency (CBDC), what do you think that other countries will do? Well, they do can try to attempt to ban the Digital Yuan. So check out what Billionaire Kyle Bass wants to US government to do to that Digital Yuan here. He wants the US government to completely ban the Digital Yuan, calling it a “cancer” to the US economy. Whether or not that is true, it remains to be seen. But I am sure there will be more calls to ban the Chinese Digital Yuan as the Chinese government will surely try to strongarm others to adopt their digital currency. The Chinese government has been “dispersing” quite a lot of money to the Chinese public as well. So we know it will be fully adopted by China in the near future.
Not just the US though. There are plenty of other countries who don’t really want to adopt or even use the Digital Yuan and getting themselves in the mercy of the Chinese government. I think a lot of countries will be more afraid of the Digital Yuan than the less centralized cryptocurrencies we have right now. Rightfully so. For crypto guys like us who are into the technology, it should be something we all dread if a CBDC does becomes the de-facto digital currency of choice. I look at USDT and my hands will start to tremble. But from what I read, it seems like a lot of Chinese nationals do own USDT themselves and often use USDT to transfer funds out of the country. Again another reason why the Chinese government is so against cryptocurrencies which they cannot control.
But with that said, it seems that a lot of countries are trying to release their own CBDC as well. This might not sound good for cryptocurrencies in general but I feel that it is actually something very positive. CBDCs should be seen more as a digital version of cash rather than something to compete against cryptocurrencies. CBDCs are just digital money guaranteed by their respective central banks. Unlike cryptocurrencies which can be used for various purposes like store of value, smart contracts, medium of exchange, for speculation and even as NFTs.
And beware of scams involving the Digital Yuan. When I was doing some research I found quite a number of such scams and there was even one with a very well-made video claiming that the Digital Yuan was founded by some Chinese national and it is just a “better” version of Facebook’s Libra and that you should purchase the Digital Yuan NOW. Note that the Digital Yuan is NOT a cryptocurrency and will definitely not be used primarily for speculation or trading. As to its value, it should be pretty stable, so you will most probably not get rich by buying it early. Think of the digital currencies as sort of an bank’s direct replacement for fiat currency. So please very careful of such scams.