- 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

US Senate likely to vote on the stablecoin GENIUS Act by Memorial Day as Brazil considers stringent regulations
US Senators Kirsten Gillibrand and Cynthia Lummis are optimistic that the Senate will vote on the revised stablecoin bill by Memorial Day. The revised stablecoin bill has refined key elements, including ethics, consumer and bankruptcy protection.

Bitcoin retreats further as chances of major breakthrough in Russia-Ukraine peace talks weaken
Bitcoin price edges below $102,000 on Thursday after repeated rejections at the $105,000 resistance over the past five days. Neither US President Donald Trump nor Russian President Vladimir Putin are expected to attend the Ukraine-Russia peace talks in Turkey.

Top 3 Gainers Amp, Aethir, Helium: AMP, ATH lead market gains as broader crypto market cools
The cryptocurrency market is taking a breather on Thursday after sustaining gains for almost two weeks, buoyed by heightened risk-on sentiment amid easing trade tensions between the United States (US) and China.

XRP price risks slashing weekly gains as liquidations surge amid falling network growth
XRP price peaked at $2.65 on Wednesday, stalling the uptrend amidst a market-wide slowdown. Long liquidations reach $8.44 million over the past 24 hours as the uptrend targeting $3.00 falters.

Bitcoin: BTC bulls aim for $105,000 after nearly 10% weekly gains
Bitcoin price stabilizes around $103,000 on Friday after rallying nearly 10% this week. Risk-on sentiment prevails as Trump announced a trade deal with the UK and ahead of the meeting with China this weekend.