China Govt Digital Currency

Discussion of the Cash portion of the Permanent Portfolio

Moderator: Global Moderator

User avatar
Kbg
Executive Member
Executive Member
Posts: 1521
Joined: Fri May 23, 2014 4:18 pm

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.
User avatar
shekels
Executive Member
Executive Member
Posts: 250
Joined: Sun Jun 02, 2019 9:01 am

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.
Wash your damn hands, people.🙏
¯\_(ツ)_/¯
SPX < 1800
Gold < 1300. Maybe,
Until the FED said "Hello" to MMT >:D
https://fred.stlouisfed.org/series/WALCL
User avatar
Kbg
Executive Member
Executive Member
Posts: 1521
Joined: Fri May 23, 2014 4:18 pm

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.
User avatar
sophie
Executive Member
Executive Member
Posts: 3317
Joined: Mon Apr 23, 2012 7:15 pm

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.
User avatar
Kbg
Executive Member
Executive Member
Posts: 1521
Joined: Fri May 23, 2014 4:18 pm

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.
User avatar
dualstow
Executive Member
Executive Member
Posts: 9663
Joined: Wed Oct 27, 2010 10:18 am
Location: next to emotional support peacock
Contact:

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
User avatar
ochotona
Executive Member
Executive Member
Posts: 3033
Joined: Fri Jan 30, 2015 5:54 am

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"
User avatar
Kbg
Executive Member
Executive Member
Posts: 1521
Joined: Fri May 23, 2014 4:18 pm

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.
gaddyslapper007
Associate Member
Associate Member
Posts: 40
Joined: Fri Dec 16, 2016 9:06 am

Re: China Govt Digital Currency

Post by gaddyslapper007 » Thu Mar 05, 2020 12:37 pm

A government digital currency is inevitable and the invention of Bitcoin probably expedited this.....from a government standpoint its perfect....tracing and taxing every penny sent, controlling the supply, freezing user accounts, .....its a government god send.

for bitcoin....The question arises.....will comfort in digital currency usage amongst people be a benefit or not to bitcoin? I would argue it would add to peoples acceptance / adoption as comfort in digital money increases. Gold has traditionally been a hedge for inflation in current times and not for transaction purposes.....the same reasons to hold gold apply to bitcoin only with transactional use benefits.
User avatar
bitcoininthevp
Executive Member
Executive Member
Posts: 154
Joined: Fri Sep 25, 2015 8:30 pm

Re: China Govt Digital Currency

Post by bitcoininthevp » Tue Mar 10, 2020 2:27 pm

Seems to be an assumption in this thread that Bitcoin's value proposition is that Bitcoin is digital. I dont see that as the value proposition. The dollar and most currencies are largely already digital.

The value proposition for Bitcoin is censorship resistance: The ability to transact without a central entity. The ability to have an asset with provably limited supply. Its anti-seizure properties.

This censorship resistance is achieved through decentralization. If you have a centralized entity (corporation or government) running the currency (digital or not), you do not get these benefits.
User avatar
Kbg
Executive Member
Executive Member
Posts: 1521
Joined: Fri May 23, 2014 4:18 pm

Re: China Govt Digital Currency

Post by Kbg » Fri Mar 13, 2020 12:18 am

I love “cash” that loses 50% of its value in a DAY! Let’s go get some.

Really don’t post such nonsense anymore. It’s a horrible form of exchange except for criminals and speculators.
User avatar
bitcoininthevp
Executive Member
Executive Member
Posts: 154
Joined: Fri Sep 25, 2015 8:30 pm

Re: China Govt Digital Currency

Post by bitcoininthevp » Fri Mar 13, 2020 9:32 am

Kbg wrote:
Fri Mar 13, 2020 12:18 am
I love “cash” that loses 50% of its value in a DAY! Let’s go get some.

Really don’t post such nonsense anymore. It’s a horrible form of exchange except for criminals and speculators.
I didn’t call Bitcoin "cash".

It is highly volatile, for sure.

Which part of what I said was nonsense? Lets try to have a productive discussion. If you have insights to share, would love to hear. If you have questions, Id love to answer as well.
Post Reply