{"id":117264,"date":"2020-11-21T20:38:00","date_gmt":"2020-11-21T17:38:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-us-election-seals-chinas-victory-in-digital-currency-supremacy\/"},"modified":"2020-11-21T20:38:00","modified_gmt":"2020-11-21T17:38:00","slug":"the-us-election-seals-chinas-victory-in-digital-currency-supremacy","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-us-election-seals-chinas-victory-in-digital-currency-supremacy\/","title":{"rendered":"# The US election seals China’s victory in digital currency supremacy"},"content":{"rendered":"

“# The US election seals China’s victory in digital currency supremacy <\/strong>”
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The world is engaging in financial warfare, and China is winning. China\u2019s digital yuan \u2014 also referred to as Digital Currency Electronic Payment, or DCEP \u2014 will soon be used around the world. The People\u2019s Bank of China is one of the most advanced central banks in the world. For that reason, it has been advancing on the digital currency front, while by all app<\/a>earances, the United States Federal Reserve has not.<\/p>\n

And now that Donald Trump and his \u201cAmerica First\u201d policy<\/a> has been defeated \u2014 though counting remains ongoing and court cases over the results are pending \u2014 China\u2019s supremacy in the area of digital currency has been assured.<\/p>\n

Joe Biden has not outlined a clear technology<\/a> policy, let alone a digital currency policy. That will assure China the opportunity to increase its lead in the digital currency race. Maintaining the American position as the world\u2019s superpower does not appear anywhere in Biden\u2019s agenda. Back in 2015, as a vice president, Biden once made a toast<\/a> to China:<\/p>\n

\u201cTo the hope and expectation that 50 years from now our great grandchildren will look back and say what a beautiful history we wrote together.\u201d<\/p><\/blockquote>\n

In 1979, Biden travel<\/a>ed to China as a junior senator after President Richard Nixon normalized relations between the U.S. and China. During his visit to Sichuan University as Barack Obama\u2019s vice president in 2011, he mentioned<\/a>:<\/p>\n

\u201cI believed in 1979 and said so and I believe now that a rising China is a positive development, not only for the people of China but for the United States and the world as a whole. A rising China will fuel economic growth and prosperity and it will bring to the fore a new partner with whom we can meet global challenges together.\u201d<\/p><\/blockquote>\n

In the meantime, China marches forward, rolling out the world\u2019s first digital currency.<\/p>\n

Related: <\/em><\/strong>Digital cold war? United States and China vie for blockchain supremacy<\/em><\/strong><\/p>\n

According to announcements, the administration of Biden and Kamala Harris is focused on the coronavirus, racial equality and climate change. In its foreign policy and American leadership plan<\/a>, dubbed \u201cThe Power of America\u2019s Example: The Biden Plan for Leading the Democratic World to Meet the Challenges of the 21st Century,\u201d the word \u201cdigital\u201d doesn\u2019t appear once. In addition, Biden has long ties with China and has long been a proponent of its industrialization and growth into a world leader. When asked by a National Public Radio journalist if he as president would keep Trump\u2019s tariffs on China, Biden shot back<\/a> with a resounding \u201cNo.\u201d<\/p>\n

The Chinese yuan via the DCEP will become the dominant global currency. DCEP won\u2019t only be successful because of the forward-thinking PBoC but also thanks to the fact that over 12 million Chinese people live<\/a> outside of China \u2014 in fact, 2.5 million live in the United States. They could adopt the digital currency and spread the yuan globally.<\/p>\n

With their help, the Chinese yuan can become an international currency. If the Chinese yuan is used by such individuals throughout the world, the Chinese currency can surmount U.S. monetary sovereignty.<\/p>\n

Related: <\/em><\/strong>Central bank digital currencies are dead in the water<\/em><\/strong><\/p>\n

The current situation has been made possible by the COVID-19 pandemic, which has increased reliance on digital services. As tensions soar in the U.S., China could siphon off global influence. While the Federal Reserve has experimented with distributed ledger platforms to understand their potential benefits and tradeoffs, it has apparently not made a definitive decision to adopt such a currency.<\/p>\n

Related: <\/em><\/strong>China and US must learn from one another and collaborate on CBDC<\/em><\/strong><\/p>\n

Jerome Powell, chairman of the Federal Reserve, has said the U.S. government is not particularly concerned with speed when it comes to developing a central bank digital currency. Morgan Creek Digital co-founder Anthony Pompliano sounded the alarm on this slipshod approach.<\/p>\n

Powell explained the U.S.\u2019s slow-moving efforts: <\/p>\n

“We have not made a decision to issue a CBDC, and we think there\u2019s a great deal of work yet to be done.” <\/p><\/blockquote>\n

Powell suggested that building a CBDC correctly was more important than winning the digital currency race. In the meantime, China marches forward. Pompliano sees this as an existential threat to the U.S. dollar. “They\u2019re talking about, like, maybe we\u2019ll build one in the next couple of years,” Pompliano said of Powell\u2019s recent comments on CBDCs. “This is not a next-couple-of-years thing.” He added: <\/p>\n

“This is a right-now thing, and if they don\u2019t act, the U.S. is going to fall really far behind China because it all comes down to accessibility.”<\/p><\/blockquote>\n

Pompliano said accessibility to a digital fiat currency will determine the winner on this new fintech frontier. “If I\u2019m sitting somewhere in the world and I can use the internet connection and I want a global currency, can I get a yuan, or can I get the dollar?”<\/p>\n

Pomp is right. The U.S. dollar\u2019s relevancy is on the line. But, the hour is late \u2014 perhaps, too late.<\/p>\n

The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n