• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
Bitcoinist.com
No Result
View All Result
Chinese roof for the Chinese Digital Yuan
Nexo

Here’s Why The Digital Yuan Is The Opposite Of Bitcoin

Eduardo Próspero by Eduardo Próspero
1 year ago
in Bitcoin, Bitcoin Politics
0
Advertisement

The Digital Yuan is imminent. The time for Central Bank Digital Currencies is near us. Sooner than later, CBDCs will be the norm. And the Digital Yuan will break ground. Here’s what this means for Bitcoin and why the two assets are directly opposed.

The Petro And The Digital Yuan

Easily monitored programmable money opens a world of possibilities for police states around the world. Even though it was heavily mocked, Venezuela’s Petro was the first Central Bank Digital Currency. It was marketed as a cryptocurrency. The deep-rooted centralization that characterized the whole project suggested otherwise.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The Venezuelan experiment didn’t go unnoticed, but the limitations of a bankrupt economy were too heavy of a burden. It’s still an interesting case study, but, what if the most successful currency of the century tried its hand at it instead? What if the most technologically advanced police state were to put its brightest minds to solve the problem?

These and other pressing questions will soon have real-life situations as answers. We will see exactly what happens when governments get central control over programmable money. Soon enough, we will know to what degree people are willing to exchange privacy for convenience. The interesting thing about the digital Yuan is that it’s a global project. The whole world will feel its effect.

Back to the Venezuelan user case, let’s quote from “A Complete Guide to Petro”:

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

As last year came to a close, Maduro said about his hopes for the Petro to be used in international petroleum commerce: “In 2019 we have a chronogram for it to be sold in Petros and in this way to continue freeing ourselves from a currency used by the Washington elite.” And in a tweet from about that time he doubled down on the idea that the cryptocurrency would “break the blockade imposed by the imperialism.”

The Petro didn’t succeed. Venezuela didn’t have the necessary pull in the OPEC to get it to be accepted as a form of payment. What could China do in a similar instance, thought? How much pull would they have? 

Related Reading | Bitcoin Demand in China High Even as Yuan Eyes Best Quarter on Record

What is the best crypto casino in July 2022? Read our comprehensive comparison! We made deposits, played and reviewed 80+ crypto casinos to choose the best one.

The Chinese government’s efforts promoting the Yuan at an international level already bore fruit. The International Monetary Fund holds it as a reserve currency since 2016. Of course, the difference with the Dollar is still quite large. More than 60% of the IMF’s reserve fund is in Dollars. Approximately 2% is in Yuan.

That’s when the Digital Yuan comes in. A totally centralized digital currency might not be the most private, but it comes with advantages. Transactions will be fast and cheap. Using it will be super convenient. You won’t need a bank account to be associated with your wallet. And, eventually, the whole world will have access to it. 

This is a topic Bitcoinist is actively covering. As we already told you:

According to Mu Changchun, an official of the People’s Bank of China (PBoC), the soon to be launched CBDC will see people’s identities linked to their wallets holding the digital coins.

Thus, Chinese authorities will have another avenue to monitor the financial dealings of its citizenry. According to Bloomberg, Fan Yifei, the PBOC Deputy Governor, has previously suggested that the CBDC could have daily transaction caps for individuals.

And about the digital wallet application itself:

It was suggested that the application is structurally similar to Alipay and Tencent’s WeChat Pay but with a few exceptions: the DC/EP wallet will allow for the completion of offline transactions, to convert bank holdings to a crypto yuan.

But don’t let them fool you. It will be a CBDC, not a cryptocurrency. In fact. the digital Yuan and Bitcoin rest on opposite sides of the spectrum.

BTC to USDT price chart - 27042021 - TradingView

BTC to USDT chart on FTX | Source: BTC/USDT on TradingView.com

Let’s Compare The Digital Yuan To Bitcoin

In the Digital Yuan ecosystem, all transactions will be faster and cheaper. To pay for that, you’ll have limited anonymity. That is, you’ll be unidentifiable for other users, but not for the government. Your identity is linked to your wallet and authorities will have a way to monitor your finances. 

Those two are almost identical in Bitcoin, if we’re honest. Most people don’t have the technical expertise or the motivation to remain anonymous in Bitcoin’s ecosystem. And the blockchain holds all transactions. Forever. 

Related Reading | Your Wallet in 2030 Will Be Full of Free Money

But let’s not make light of it, the power that programmable money will provide to authoritarian governments is not to be ignored. Consider one of its first manifestations, bills that carry an expiration date. The American Institute for Economic Research takes the matter to its logical conclusion:

Could a demurrage feature of a programmable digital currency, nominally designed to spur consumption and increase monetary velocity, not ultimately become a broad punitive instrument?

Too much power is often followed by abuse of power. That expiration date can easily be turned into torture. It opens the door for unofficial punishments of all sorts. And this is only one of the possibilities programmable money brings.

Now, in Bitcoin, you won’t have to deal with daily maximum expenditures of any sort. And remember, most people are subject to similar measures in traditional banking. As long as you remain in Bitcoin’s ecosystem you’ll have total control of your funds in the soundest money that the world has ever seen. The problem is, you’ll eventually have to interact with other ecosystems.

In a centralized digital currency kind of world, the government could change the rules at any time. And your programmable money would immediately feel and obey those changes. In Bitcoin, the machine is already in motion. Everything is going according to plan. Nobody orders disinflation, it just happens because it’s implicit in the code.

The contract says there will only be 21 million Bitcoins. That makes it the most scarce store of value in the world. How much money will governments create now that they don’t even have to print it? Only time will tell. Probably a lot, though.

Featured Image by Leon Liu on Unsplash - Charts: TradingView 
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Eduardo Próspero

Eduardo Próspero

Eduardo Prospero is an author, a content writer, and a professional rapper. A Bitcoin maximalist in disguise. Working on a Bitcoin book. Beware of my Telegram impersonator!

Related Posts

Bitcoin

Bitcoin Koalas: 55% Of Investors Didn’t Sell Their Coins During Crypto Storm

4 hours ago
Crypto

Crypto Rout On Trading Volumes Costs Coinbase $1.1 Billion In Losses

6 hours ago
Bitcoin

Bitcoin Rally Ignites Lackluster Performance Of Crypto Stocks

11 hours ago
bitcoin miners

Bitcoin Miners Sold 5,700 BTC During July, New Report Finds

20 hours ago
Bitcoin

Bitcoin Miner Revenue Slows Down As BTC Price Slumps Sideways

22 hours ago
Crypto

Crypto Markets Have ‘Hit The Floor,’ JP Morgan Says, As Bitcoin Nears $24,000

1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.