China Will Use Its Digital Currency To Compete With The USD

Amid questions and speculation about China’s new central bank-backed digital currency termed DCEP, one thing remains clear: to the extent that China is working on digital currency, the main benefits would be to replace fiat cash with a layer of traceable digital cash, ingesting another layer of data into the fearsome data machine that powers both government monitoring and the domestic machine learning industry — as well as providing enough “credible” decentralization so that the RMB could continue a digital ascent to greater internationalization and perhaps challenge the USD’s position as the premier reserve currency of the world.

This is a trend cryptocurrency holders and adherents must track: any potential ascent of a Chinese digital currency that “smells” like cryptocurrency may initially excite institutional investors and retail investors not deeply invested into the…