- 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.
Recommended Content
Editors’ Picks
Lido DAO announces new phase on Ethereum with Simple DVT module
Lido DAO voted on the deployment of the Simple DVT module nearly six months ago, it is ready for mainnet as of April 17. Simple DVT helps to make Lido’s technology accessible to more users. LDO price is down nearly 3% in the past day.
New altcoins crash and burn, but this altcoin shows strength Premium
Binance Coin price shows a bullish pennant continuation pattern. BNB could range between the $600 to $526 levels until the skies clear out for Bitcoin. The altcoin could see a massive gain with the upcoming BEP-336 upgrade.
Cronos price fails to recover despite network upgrade
Cronos (CRO) is an Ethereum Virtual Machine (EVM) compatible chain in the Cosmos ecosystem. A mainnet upgrade was completed early on Wednesday and the asset’s price declined nearly 2% in the past 24 hours.
XRP tests $0.50 resistance after Ripple CLO says pretrial conference with SEC did not take place
XRP is stuck below $0.50 resistance after failing to close above this level since Monday. Ripple CLO Stuart Alderoty said late Tuesday there was no pretrial conference since the SEC dropped charges against executives.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.