Few days ago, Central Bank of China released a white paper for DCEP.
As WuBlockchain reports above, China emphasize that one of the reasons for the launch of DCEP is the challenge of cryptocurrency.
Whitepaper stands quite antagonistic against Cryptocurrencies and Stablecoins. Following was taken from WuBlockchain newsletter:
”Cryptocurrencies, especially global stablecoins, are developing rapidly. Since the advent of bitcoin, the private sector has introduced various so-called cryptocurrencies.According to incomplete statistics, there are more than 10000 influential cryptocurrencies with a total market value of more than US $1.3 trillion.Bitcoin and other cryptocurrencies use blockchain and encryption technology, claiming to be “decentralized” and “completely anonymous”.
However, due to the lack of value support, drastic price fluctuations, low transaction efficiency, huge energy consumption and other restrictions, it is difficult for bitcoin to play its monetary function in daily economic activities.At the same time, cryptocurrency is mostly used for speculation, which has the potential risk of threatening financial security and social stability, and has become a payment tool for money laundering and other illegal economic activities.
In view of the big fluctuation of cryptocurrency price, some commercial institutions have launched the so-called “ stablecoins”, trying to maintain currency stability by anchoring with sovereign currency or related assets.Some commercial institutions plan to launch a global stablecoins, which will bring many risks and challenges to the international monetary system, payment and settlement system, monetary policy, cross-border capital flow management, etc.”
This is something we could foresee looking at the previous actions from CCP. China doesn’t like having things they cannot control, and the whole cryptocurrency premise, especially of Bitcoin is that it is decentralized and cannot be controlled by anyone. To China, that means Bitcoin and other cryptocurrencies are the enemies of the state.
If you want to follow closely what China is doing in terms of its CBDC, please follow WuBlockchain or check out his email list
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