Wednesday, October 21, 2020

Digital Yuan Will Dominate Global Market If US Does Not Act Immediately

 Morgan Creek Digital co-founder Anthony Pompliano did not want to waste time, hoping the United States (US) would soon set up a central bank digital currency (CBDC) for fear of China's digital currency position, the yuan dominating globally.

His statement came after Federal Reserve chairman Jerome Powell said various aspects needed to be taken into account before applying the use of digital currency.

This means that the American administration is in no hurry to make the CBDC effort a reality.

Pompliano argues that if the digital yuan starts to become a global currency, it is not impossible that the digital dollar will lag behind and it will be difficult to get that currency.

The allegations differ from the Bank of Japan (BOJ) 's recent statement on the potential of digital currencies to dominate the global financial markets.

At the same time, the Reserve Bank of New Zealand (RBNZ) also has no sign of launching a CBDC in the near future.

According to RBNZ assistant chief executive officer Christian Hawkesby, the country's central bank is working to review the CBDC, ensuring a new and holistic approach in introducing digital currency to the public.

Hawkesby also does not rule out the actual benefits of fiat over CBDC, especially involving offline use, including privacy and autonomy in storage as well as payment.

China tested the application of the CBDC last April and now 9 counties are testing the use of digital yuan including Shenzhen, Guangzhou, Hong Kong and Macau.