China Govt Digital Currency

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Kbg
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China Govt Digital Currency

Post by Kbg » Fri Jan 17, 2020 8:06 pm

https://www.bloomberg.com/amp/opinion/a ... ssion=true

This could be huge and things like this is why I don’t see Bitcoin having a huge future.
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shekels
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Re: China Govt Digital Currency

Post by shekels » Sat Jan 18, 2020 8:50 am

Kbg wrote:
Fri Jan 17, 2020 8:06 pm
https://www.bloomberg.com/amp/opinion/a ... ssion=true

This could be huge and things like this is why I don’t see Bitcoin having a huge future.
I think every Communist / Socialist leaning country will want to have their own type of Digital currency
It can be used as a Tool, they could control the population in various ways.
https://www.qwant.com/
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Kbg
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Re: China Govt Digital Currency

Post by Kbg » Sat Jan 18, 2020 10:13 am

shekels wrote:
Sat Jan 18, 2020 8:50 am
Kbg wrote:
Fri Jan 17, 2020 8:06 pm
https://www.bloomberg.com/amp/opinion/a ... ssion=true

This could be huge and things like this is why I don’t see Bitcoin having a huge future.
I think every Communist / Socialist leaning country will want to have their own type of Digital currency
It can be used as a Tool, they could control the population in various ways.
I have a slightly different take, currencies have, for most of human history, been a domain of government that is jealously guarded. The reason I flagged this article was the potential to dethrone how western banking and commerce has been transacted for centuries. The challenge is that for China I don't think there is much trust there by a good chunk of the world.

Anyway, I think this is something I'll put on my watch list.
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sophie
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Re: China Govt Digital Currency

Post by sophie » Sat Jan 18, 2020 2:39 pm

I figured that big banks and governments would eventually jump on the cryptocurrency bandwagon after I heard about JP Morgan Chase's new digital currency. It'll be very interesting to watch, for sure.

I also would predict that Bitcoin will become marginalized by these well funded and powerful efforts. I do wonder how this would affect the dollar's status as the world's reserve currency.
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Kbg
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Re: China Govt Digital Currency

Post by Kbg » Sat Jan 18, 2020 4:21 pm

I’m guessing one immediate impact of digital once it goes big is transaction spreads will go to near zero so anyone in that biz is going bankrupt. Can’t imagine lending will go away though.
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dualstow
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Re: China Govt Digital Currency

Post by dualstow » Sat Jan 18, 2020 7:28 pm

They’ve already got control with AliPay and WeChatPay. Although those are mentioned in the article, I should mention that it’s harder and harder to use cash each time I visit China. (It’s been several years now, but still.. Where are you, Momto2Boys)

I plan to dump all my paper renMinBi this spring.

Will they take Bancor?

As for the rest...I’m in denial :-X
You may have some 30-year treasury interest as of Saturday. Vanguard’s transaction history is finally showing it, too.
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ochotona
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Re: China Govt Digital Currency

Post by ochotona » Sat Jan 18, 2020 10:35 pm

I'm skeptical, because of:

"The impossible trinity (also known as the trilemma) is a concept in international economics which states that it is impossible to have all three of the following at the same time: a fixed foreign exchange rate; free capital movement (absence of capital controls) an independent monetary policy"
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Kbg
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Re: China Govt Digital Currency

Post by Kbg » Sun Jan 19, 2020 2:53 pm

Idk, do you think the Chinese even care about #2? Seems a western liberal economic concept.

Not sure the current administration even cares about it.
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