Share:
  • China’s digital yuan to rival USD and not BTC, says Matthew Graham - the CEO of Sino Global Capital. 
  • The digital currency electronic payment system (DCEP) has borrowed concepts like “UTXO” from Bitcoin.

With the upcoming digital yuan, China will aim to rival the USD and not Bitcoin, says Matthew Graham, the CEO of Beijing-based Sino Global Capital. After analyzing the highly-anticipated digital currency, Graham said that China sees new technologies as a “leapfrog opportunity” to challenge the dollar’s authority. 

Speaking with Boxmining founder Michael Gu at the Unitize conference, Graham said: 

Swift, CHIPS, Fedwire [...] they’re antiquated, they're expensive, they're slow. It's 2020 and we have transactions that take three days to clear and that are far more expensive than they should be. All of these technologies that underpin much of the USD-centric global economy are really showing their age. So that's a big opportunity [for China].

According to Gu, Beijing’s upcoming digital currency electronic payment system (DCEP) has borrowed several technological details from blockchain, including concepts like UTXO. Nevertheless, DCEP is not similar to public blockchains like Bitcoin. It will reportedly be issued by the People’s Bank of China and remain under the central bank’s full control, as with other national fiat currencies. 

Graham further added that DCEP could be very useful for implementing negative interest rates. Additionally, it opens up many capabilities in Artificial Intelligence (AI) and machine learning for fraud detection. He emphasized that DCEP isn't about Bitcoin. “It's about potentially internationalizing renminbi, at least to some extent.”


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Kraken to launch US-listed stock and ETF trading services after $30 million SEC settlement

Kraken to launch US-listed stock and ETF trading services after $30 million SEC settlement

Kraken has indicated plans to diversify, with intentions to leverage the first-mover advantage towards ETF. Meanwhile, the crypto markets continue to appeal to the US SEC for a nod amid a long pile of applications already on the financial regulator’s desk.

More Cryptocurrencies News

Ethereum Futures ETF to roll out by first week of October: Bloomberg ETF analyst

Ethereum Futures ETF to roll out by first week of October: Bloomberg ETF analyst

While spot Bitcoin Exchange Traded Funds (ETFs) approval has been a matter of controversy in the United States, Ethereum Futures ETFs' might not be. The Securities and Exchange Commission (SEC) is most likely to approve the trading of ETH ETFs in the next seven days.

More Ethereum News

Chainlink price might face a correction before it can climb back to 2023 highs

Chainlink price might face a correction before it can climb back to 2023 highs

Chainlink price has performed exceptionally over the past couple of days, making room for profits for investors. However, further gains from here on would warrant a market cooldown before the rally can continue.

More Chainlink News

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple: BTC, ETH, XRP at catch 22 moment

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple: BTC, ETH, XRP at catch 22 moment

Bitcoin (BTC) price is trying to lead the rest of the market into recovery. However, it faces a key obstacle, same case for Ethereum (ETH) and Ripple (XRP) positioning the top three cryptocurrencies in a muddle. 

More Bitcoin news

Bitcoin: BTC downside likely after 20-week EMA culls bulls

Bitcoin: BTC downside likely after 20-week EMA culls bulls

Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.

Read full analysis

BTC

ETH

XRP