Phillip Gillespie, chief executive of Japan's B2C2 liquidity provider, warned that the launch of the digital yuan would affect the future of Bitcoin and other cryptocurrencies.
Clearly the individual again, once China fully launches the digital yuan, the country led by President Xi Jinping will immediately block the crypto sector.
For information, the digital yuan is the digital currency of the central bank or known as the CBDC.
For now, crypto investors are prohibited from converting yuan into tokens and as a result they are forced to use Tether (USDT) to trade Bitcoin (BTC) and other virtual currencies.
Still, with the introduction of the new law, it is unlikely it will disrupt the total liquidity of cryptocurrency assets and what Gillespie worries is, China has the potential to block the USDT.
In fact, Gillespie does not rule out the possibility of a panic selling phenomenon if the USDT is completely blocked.
At the same time, Tether CTO Paolo Ardoino anticipates the impact CBDC could have on stablecoins.
“The success of Tether has been a blueprint for how CBDC will work in the future. Furthermore, it is impossible for CBDC to be available on public blockchains such as Ethereum and Bitcoin. This means it is available with personally issued stablecoin only.
