In modern countries like America and China, citizens have the luxury of holding all their cash on a card or phone that’s tied to their bank account. Therefore, nixing the need to hold physical cash yet the option remains. However, the pandemic has caused people to question the need for physical cash. Introducing monetary Darwinism (or possibly Gresham’s law) with cryptocurrency supplanting fiat currency, and China’s leading the charge:
“[China] is rolling out a cryptocurrency, a lot of the details have not been divulged. I can tell you that the cryptocurrency that China’s rolling out will be backed by gold. It’s a two-pronged announcement. Number one, China’s got 20,000 tonnes of gold, number two, we’re rolling out a crypto coin backed by gold, and the dollar is toast,” Keiser told Kitco News.
Keiser added that bitcoin is a superior form of currency to gold.
“Both fiat money and gold are inferior to bitcoin for one very simple reason, that with a bitcoin transaction, it is also simultaneously the settlement. You don’t have that with fiat, you don’t have that with gold,” he said
This cryptocurrency is the digital Yuan:
DC/EP is a digital version of the yuan and has been under development for more than five years.
DC/EP differs from existing cryptocurrencies because it is legal tender, centralized, and not anonymous.
DC/EP could help bring China bring its unbanked population into the mainstream economy, accelerate the move to a cashless society, and internationalize the renminbi’s use in trade settlements.
China didn’t stop there. They are now working on a universal digital payment network:
BSN plans to build a universal digital payment network (UDPN) in five years based on the CBDCs of various countries, working with several international banks and technology companies. Practically with UDPN, any information system such as banking, insurance, ERP, and mobile applications can call UDPN services through APIs to enable a standardized digital currency transfer method and payment procedure. The UDPN is positioned to be a convenient and cost-friendly global payment solution. For now, UDPN is at the design stage, and its beta version will be launched in the second half of 2021.
There might be an opportunity to create a new global bimonetary system analogous to the bimetallism, but with gold & bitcoin called phygitalism. China ranks 6th place for gold reverse, but their mining pools for Bitcoin have many wondering if they will centralized Bitcoin.
Applying the Pareto Principle, it appears China is positioning itself to be one of the small groups controlling the majority of new wealth. Couple that with their ever increasing soft power globally via the New Silk Road. Like the wise and honorable Tony Montana once said, ” first you get the money then the power…” Well, China certainty has the money and now the power so the question is who’ll be their woman? The western world??