Military Review

Yuan with a human face. Who's Afraid of Chinese Cryptocurrency

30

Is one bitcoin not enough for them?



It seems that the US State Department, together with the FRS, are seriously puzzled by the prospect of a real release of the digital yuan into circulation. That is worth at least the latest statements from Washington.

In short, all of them can be summarized as follows:

“The American administration is not concerned about the possibility of using digital money, including the yuan, to circumvent sanctions. It is much more important to assess the possibilities of real control over such operations. "

It is characteristic that, as soon as China decided to finally present the digital yuan, Washington immediately started talking about the fact that they were interested in the possibility of creating a digital dollar. One bitcoin is clearly not enough for them.

But

"While the US is not planning any measures to counter threats from China's digital currency."

So there are still threats?

Let's make a reservation, however, right away - the notorious digital yuan has almost nothing to do with bitcoin. Almost only because it is also intended exclusively for payments on the worldwide network.

But bitcoin is still something like a network game on a limited scale, and what the scale of games with the digital yuan will be is even scary to estimate. And yet, it is necessary to separate the digital yuan from the usual, which has long existed in the form of an electronic one.

It exists and successfully operates on bank accounts, which, it seems, very soon will be 100 percent electronic. Evil tongues claim that the Chinese, with their ability to copy everything, down to the last molecule, completely ripped off the system laid down for the circulation of bitcoin and its analogues.

Perhaps this is not entirely true or not at all, but why, then, in the People's Bank of China, are they so stubbornly defending the version of the beginning of the development of a national cryptocurrency back in 2015? But all independent sources unanimously repeat about the year 2019.

Dates don't converge


It has not yet been forgotten that by that very 2019, bitcoin had already managed to break all possible records for the exchange rate against the dollar and others like it a couple of times, and twice prepared for a new leap. But what the notorious mining will be for the Chinese yuan, that is, the man-made emission, on which all the power of bitcoin and its analogues rests, still remains a mystery.

In the fall of 2019, the nineteenth Covid has already begun to spread in China, but the bankers there nevertheless plucked up the courage to announce their readiness to test the national cryptocurrency. There were even named four banks participating in the project - together with the national one it is industrial-commercial, construction and agricultural.

The characteristic difference between the digital yuan and bitcoin is that these banks have deposited their most common funds digitally. Sectors of the economy for digital investments were even identified and payment system operators were connected. But the case, as we can see, dragged on until the spring of 2021. The pause could be associated with the pandemic, but China has pointedly distanced itself from it.

Goodbye dollar, goodbye


For the second year now, the Chinese economy, albeit not officially, has moved from the list of developing to the category of developed ones. And this could not but affect the attitude towards the Chinese yuan as a means of saving and investing.


For anyone else, but for the authors, the yuan has completely imperceptibly pushed both the dollar and the euro as the most reliable and at the same time attractive asset. Attractive, both in terms of profitability and reliability.

It seems that in the same way everything is changing in the financial world, not only for the yuan, but for everyone else. The Fed and the European Central Bank can puff out their cheeks as much as they want, and any trumpets and all sorts of different bidens can declare trade wars. The increased attention to entering the digital yuan arena is quite justified.

A couple of years ago, no one would have thought of using the yuan for the risk off strategy, which got its name from the common English phrase “risk aversion”. Now the diversification of assets already a priori assumes a 10-15% share in Chinese money.

For more than a year now, investors have been balancing between the permanent expectation of a global failure and rare, but very sharp surges in activity, counting on the momentary recovery of everything and everyone. Fear of global shocks almost became the norm, especially after the alleged results of the "vaccine war" turned out to be completely unclear.

Remember everything


Have you forgotten how the Chinese authorities quietly drove domestic interest in the pandemic to zero? And thus completely relieved ourselves of the need to give the command to buy the yuan, when its "stabilizing" rate could be unexpectedly collapsed. The digital yuan is nothing more than a statement of the fact that a new "emperor" has taken over the financial market.

No, of course, for a few more years, the dollar will be listed first in any case. But in the digital turnover, which so far weakly correlates with the traditional, including electronic, the dollar, the euro, and the bitcoin are unlikely to count on the fact that the yuan will remain "only fourth."

At the moment, even online commerce, we repeat, 100 percent electronic, still remains in its very essence traditional - when the movement of funds in one way or another occurs in bank accounts. The digital turnover actually puts them outside the brackets.

Bitcoin and other cryptocurrencies started immediately without any connection to banking. And this is their advantage, but at the same time and disadvantage. Purely technical and psychological difficulties with the translation of traditional calculations into digital ones hinder and will prevent cryptocurrencies from going public.

But they don't need that - this is also one of the main differences in comparison with the state cryptocurrency. However, it is the digital currency that removes all these difficulties, by definition, by integrating network and banking trade. Trade in both ordinary goods and services, and money, that is, conducting banking operations.

Any transactions, regardless of the link to electronic accounts or digital currency. And it is the digital yuan, which can be freely converted into a regular one, that can become the missing link that can bring together network and traditional currencies.

Devaluation as a threat


It has long been known that the creditor often depends on the debtor more than he does on him. And if there are a lot of debtors, the creditor sometimes has nowhere to go but to “forgive” or, at best, renew. The banking business is based on the fact that the holder of funds, that is, the bank, dictates its conditions when it takes funds from depositors, and when it lends to someone (and often the same depositors).

Yuan with a human face. Who's Afraid of Chinese Cryptocurrency

The transition of the same yuan to digital provides it with protection from uncontrolled third-party manipulations, including devaluation, so powerful that in comparison with it the entire power of the People's Bank of China fades. Moreover, unlike bitcoin, there is no issue with digital money, since the control of the same national regulator will not go anywhere - it remains in effect.

Digitalization is also a reliable defense against trade wars, since it allows you to use any bypass network channels for settlements that may not even fall under the control of the strictest controllers.

Those involved in the fight against money laundering and the financing of terrorism should think seriously about this prospect. It is possible, of course, to include in the programs total surveillance of absolutely all any dubious transactions and transfers, but then no robot can cope even with their superficial analysis.
Author:
Photos used:
sfc-eg.com, m.hightech.plus, neopresse.com
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  1. rocket757
    rocket757 April 14 2021 15: 03
    +4
    The American administration is not concerned about the possibility of using digital money, including the yuan, to circumvent sanctions. It is much more important to assess the possibilities of real control over such operations. "
    Yes, yes, it will go by them, and this is already "CARAUL are robbing !!!"
    1. Civil
      Civil April 15 2021 09: 11
      -2
      The Chinese Communist Party has once again proved that only communists can think strategically and effectively solve issues even in terms of high technologies, and not run in the tail of a departing train with oil and gas pipes. As one country 3 of the world with nuclear missiles, in decline. Which is about to enter the war to bring the United States to the negotiating table.
      1. rocket757
        rocket757 April 15 2021 09: 16
        +1
        Quote: Civil
        The Chinese Communist Party has once again proved that only communists can think strategically and effectively solve

        The question is in ideology, the way of building, governing the state ...
        1. Civil
          Civil April 15 2021 09: 44
          +1
          Quote: rocket757
          The question is in ideology, the way of building, governing the state ...

          Namely, now there is quite an ideology / planning:
          1. For the elite - to earn as much as possible by any means - to go to the children in the West.
          2. For the average (very conditionally) buy a house in the South, rent out an apartment and leave.
          3. For everyone else to maintain an apartment, buy food, a car.
          And everyone understands that things will get worse.
          1. rocket757
            rocket757 April 15 2021 09: 58
            +1
            The situation is clear ... but what do those who are offended FOR POWER ???
            So it is not uncommon to have \ manage to hear \ read quite understandable, harsh, critical, very correct, in my opinion, statements, but ... somehow this is all INCREASE !!!
            Where is our uniting CENTER, POWER, COMMUNITY ???
            1. Civil
              Civil April 15 2021 10: 16
              +1
              and what do those who are offended for holding?

              As a rule, these are honest and conscientious people, such do not pass the selection for power, since an honest person is limited only by the truth, ordinary unrestricted swindlers climb. Therefore, honest and conscientious people are on the sidelines of our society. They drink too much.
              So it is not uncommon to have \ manage to hear \ read quite understandable, harsh, critical, very correct, in my opinion, statements, but ... somehow this is all OUT!
              This is just a reflection. If you step on a mouse, it also squeaks, but does not go into battle.
              Where is our uniting CENTER, POWER, COMMUNITY?

              Around you, this is society, the strength is in its stable apathy (khatiskraznost), the power is based on this, it is the center of decision-making.
              1. rocket757
                rocket757 April 15 2021 10: 41
                0
                Quote: Civil
                Therefore, honest and conscientious people are on the sidelines of our society. They drink too much.

                In different ways, but at the top of those you can not look for ... the SYSTEM of those who got there do not understand how ... gets rid of, in one way or another, if you cannot remake it for yourself!
                With the SYSTEM, you can only fight SYSTEM!
                1. Civil
                  Civil April 15 2021 10: 56
                  -1
                  Quote: rocket757
                  With the SYSTEM, you can only fight SYSTEM!

                  Who will you rely on? For example, people in power have to negotiate with each other. People without power in our wonderful country can never agree on anything positive, whether they are opposition-minded people or pro-power people.
                  The history of Russia knows no such examples. Shoot, dispossess, organize a revolution - that's all right. Look, as in the comments, everyone is against everyone, and the paid ones add even more fuel to the fire.
                  1. rocket757
                    rocket757 April 15 2021 10: 58
                    +1
                    Quote: Civil
                    The history of Russia knows no such examples.

                    In the history of our country, examples are DIFFERENT!
                    And the revolution does not come by ITSELF, there are always objective reasons for the emergence of a revolutionary situation.
                    1. Civil
                      Civil April 15 2021 11: 01
                      0
                      Quote: rocket757

                      In the history of our country, examples are DIFFERENT!

                      Where is the example when people in Russia have agreed on the positive? I'm not talking about a limited circle of people such as boyars or the Politburo. We are talking about a reality where people agreed and they succeeded. But Romanov was not elected, and he put everyone like that even more into slavery.
                      1. rocket757
                        rocket757 April 15 2021 11: 23
                        0
                        If we turn to the history of various events, we will find out that the unification of large conglomerations of people into a single state took place peacefully extremely rarely, and even then there were dissatisfied people ALWAYS and EVERYWHERE.
                        And still, people found common ground, reasons for uniting on different issues, problems and solved them ALL TOGETHER!
                        Those. my opinion ... we can unite to solve our problems! We need, of course, some kind of impetus to unite the center. This is not an easy matter, you have to work a LOT!
                      2. Civil
                        Civil April 15 2021 12: 57
                        +1
                        Quote: rocket757
                        We need, of course, some kind of impetus to unite the center. This is not an easy matter, you have to work a LOT!

                        Yes, you are again hinting that a tsar-president is needed, only a new one. So he will definitely be the most honest and will solve all the problems of Russia. It doesn't work in any way. Either everyone is doing something good together, or the next tsar with his friends hangs noodles to the population.
                      3. rocket757
                        rocket757 April 15 2021 13: 25
                        0
                        Quote: Civil
                        Yes you are hinting again

                        This is your fantasy ... I am not hinting, but I say Soviet and have always been for the Power of the Soviets !!! Only those who raised the country from ruin at the beginning of the last century, when WE WILL BUILD OUR NEW WORLD !! and built, by the way. ALL TOGETHER and built.
  • Blacksmith 55
    Blacksmith 55 April 14 2021 15: 12
    +6
    In fact, all states are interested in limiting or completely getting rid of cash.
    Then there will be complete control of the state and banks on the movement of money.
    As an example: I asked someone to stick wallpaper at home, pay through the bank, and ...... the tax must be paid. You can, of course, go to barter.))))
    1. Svarog
      Svarog April 14 2021 15: 37
      +9
      Quote: Blacksmith 55
      You can, of course, go to barter.))))

      Here everything will be the envy of taxation. If they fight ... and this temptation will grow every year, in this case really all sorts of new options for exchanging goods for money or for goods will appear .. I am sure that there will be craftsmen who will create a shadow currency ..
      1. depressant
        depressant April 14 2021 16: 42
        +2
        Be that as it may, colleague Svarog, sooner or later the world will switch to cryptocurrency. And only one thing worries me: how are we? So I think it would be nice for our state to get involved in the process in order to earn extra money, but he can only hear from him: "We? Never!" But our rich people do their best. For example, a certain Vitaly Borshchenko, the founder of a company registered, mind you, in Switzerland under the name BitCluster, is creating huge mining farms in Russia. The equipment of these farms is now located in the Ivanovo region, in Norilsk, Angarsk and in Bratsk. In Norilsk, the equipment was housed in four 20-foot containers on the site of the former old Norilsk Nickel plant, which was closed in 2016. The service employs 15 people on a rotational basis. Electricity fee for BitCluster is 2,75 rubles per kilowatt-hour. At the moment, the equipment consumes 11,2 MWh of electricity (plans to expand to 31 MW). Installed miners Antminer S19.
        And what about the state? And it pretends to look worried and says that it would be nice to raise the payment for electricity to the population. Asking the question for whom our government works, in my opinion, is pointless, and so it is clear to whom the cryptocurrency generated on the territory of Russia goes.

        Officially, Norilsk Nickel, which issued its own token on the digital blockchain platform Atomyze, has nothing to do with the BitCluster mining farm, which makes you chuckle. And this very branch of the BitCluster company, a stranger to us, is currently mining up to six bitcoins per day. At today's exchange rate, this is more than 15 million rubles a day, that is, 450 million a month. And the cost of electricity per month is only 22,176 million. Profitability 2000%. Investments in miners - 90 million rubles. Everything paid off in the first month. The largest BitCluster farm is located in Bratsk.
        And why is our Rostec not moving in this direction? But nothing! The state likes to cry that it has no money. This will be the case when all countries switch to cryptocurrency. Or they will not move, dropping it gradually, but for many billions and not at all rubles. And even trillions. And while the possibilities of mining are not exhausted by the limit, the green light has been given to the enrichment of the big Russian bourgeoisie. Well, we must think and the top officials - how can we do without it!
        1. vadimtt
          vadimtt April 15 2021 11: 32
          +1
          You can't even imagine how many "farms" Sberbank has laughing
    2. tihonmarine
      tihonmarine April 14 2021 15: 45
      +7
      Quote: Blacksmith 55
      As an example: I asked someone to stick wallpaper at home, pay through the bank, and ...... the tax must be paid.

      This is how they create an "electronic concentration camp", barter is better.
      1. Monster_Fat
        Monster_Fat April 15 2021 00: 40
        +4
        Absolutely right is the "digital control" which, in fact, is the state digital currency, there is a real electronic concentration camp, for the most important principle of individual freedom is violated - the presumption of innocence and freedom to dispose of one's income and savings. For example, the so-called digital yuan has the function of burning it at a certain time, such as in order to allegedly stimulate consumption, not accumulation. And is this a "human face" ?:
        “The digital yuan, a new government electronic currency currently being tested in China, will have an 'expiration date' function.

        According to The Wall Street Journal, various "shelf life" options have already been tested. The introduction of such a function will greatly increase the central bank's ability to control the economy and become a nightmare for people seeking to accumulate savings. The government will be able to stimulate consumption by announcing that on a certain day, part of the digital yuan will become invalid. This will force their owners to quickly spend this currency.
        The digital currency will also give the PRC authorities complete control over domestic financial transactions. They will be able to track in detail all transactions carried out by citizens, fine for violations and block the accounts of the guilty ones. "
  • Pessimist22
    Pessimist22 April 14 2021 15: 19
    +4
    Of course, it's too early to bury the dollar, but the yuan and its digital version will certainly find their niche and will clearly not be in the last ranks.
    1. tihonmarine
      tihonmarine April 14 2021 15: 46
      -1
      Quote: Pessimist22
      Of course, it's too early to bury the dollar, but the yuan and its digital version will certainly find their niche and will clearly not be in the last ranks.

      But in any case, the Euro is ahead, that's for sure.
  • dzvero
    dzvero April 14 2021 15: 36
    +4
    And I can't understand the sacred meaning of cryptocurrency at all smile It is generally understandable, but ... What, for example, is the difference from the gold standard? After all, gold can be "held in hand", but bitcoin? The network / disk / flash drive will come back and ... that's it. Or maybe the main advantage is in "bypassing" the central (dollar) regulator? Those. independent personal analogue of SWIFT? So after all, "closing the shop" is difficult, but possible. The PMSM interest in society is purely speculative (take it for now), and the state interest is precisely in the independence of its (!) Payment system.
    1. Ronald Reagan
      Ronald Reagan April 14 2021 18: 15
      0
      So after all, "closing the shop" is difficult, but possible

      To do this, you need to lay down the Internet all over the world, forever. laughing
  • Basarev
    Basarev April 14 2021 15: 38
    +4
    Nothing will come of the Chinese. The very idea of ​​cryptocurrencies is to have a means of payment beyond the control of any government.
    1. Genry
      Genry April 14 2021 16: 11
      -5
      Quote: Basarev
      Nothing will come of the Chinese.

      Will come out!
      SWIFT, VISA, MasterCard - will be trampled.

      Even Russia launches "Digital Ruble".

      https://cifro-rubl.ru/

      https://cbr.ru/analytics/d_ok/dig_ruble/

      Full version in PDF:
      https://cbr.ru/StaticHtml/File/112957/Consultation_Paper_201013.pdf
  • unaha
    unaha April 14 2021 16: 13
    +5
    "For anyone else, but for the authors, the yuan has completely imperceptibly pushed both the dollar and the euro as the most reliable and at the same time attractive asset." Yeah ...
    “Since 2018, investments in the yuan have resulted in a loss of $ 5 billion for Russia, since the Chinese currency has devalued by 11%. The American authorities have repeatedly accused Beijing of manipulating the yuan exchange rate, but the Russian regulator seemed to have not heard this. that the Central Bank keeps the volume of the yuan at the level of 66-69 billion dollars unchanged, regardless of the devaluation of the yuan. "
    Sooo reliable and attractive asset.
  • Undecim
    Undecim April 14 2021 17: 17
    +2
    For anyone else, but for the authors, the yuan completely imperceptibly pushed both the dollar and the euro as the most reliable and at the same time attractive asset.
    Well, for Podymov it is clear that he is a propagandist, his position is supposed to, even contrary to logic, write that "the dollar has been squeezed out." But his co-author appears as a Doctor of Economics. The presence of such an academic degree implies a higher level of knowledge than that of propagandists-agitators.
  • nikvic46
    nikvic46 April 15 2021 06: 09
    -1
    Well written, but not clear. And what place was assigned to us in this battle? We bought the dollar. We will buy the yuan. In my opinion, there is a struggle for a new financial world order.
  • NF68
    NF68 April 16 2021 16: 39
    0
    It is clear who is afraid. And not only cryptocurrencies.
    1. agond
      agond April 16 2021 19: 13
      0
      If the Chinese bitcoin is under the control of the state, then who knows, and the emission may be possible and much more.