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posted by Fnord666 on Sunday August 23 2020, @07:29PM   Printer-friendly
from the digiyyan? dept.

China Is Approaching the Release of Digital Yuan by Expanding its Trials:

As the idea of issuing the Central Bank Digital Currency (CBDC) is gaining traction worldwide, China makes practical steps to make their digital yuan release closer. Now, the country is going to expand its trials to test the CBDC potential on a larger scale.

CoinIdol, a world blockchain news outlet, has reported the start of the first digital yuan trials back in spring 2020. Initially, it covered four locations across the country: the cities of Chengdu, Suzhou, Shenzhen, and Xiong'An. It included major commercial banks of the country as well as some well-known global brands such as McDonald's and Starbucks.

Now, as the Wall Street Journal reports, the People's Bank of China (PBoC) plans on expanding the pilot's area to the country's major cities and provinces including Beijing, the provinces of Tianjin and Hebei, the Yangtze River Delta region, and the Guangdong-Hong Kong-Macao Greater Bay Area.

The expansion is mostly targeted at checking the operation of the CBDC on a larger scale, as well as shaping of final policies before the full-fledged launch. However, the PBoC haven't provided any specific date of the expansion start, as well as the planned launch. At the same time, the institution stated that final policy-shaping is expected to be completed before the end of 2020, so the expansion is likely to start in the days ahead.

[...] The launch of the digital yuan can potentially make China the world's strongest economy, thus giving it a chance to combat the US hegemony in the world. That is why the country is very unlikely to take too long with expanding its CBDC trials as well as finishing all development processes.

Also At:
China Expands Digital Cash Pilot Program:


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  • (Score: 4, Interesting) by Sulla on Sunday August 23 2020, @09:30PM (10 children)

    by Sulla (5173) on Sunday August 23 2020, @09:30PM (#1040921) Journal

    The launch of the digital yuan can potentially make China the world's strongest economy, thus giving it a chance to combat the US hegemony in the world. That is why the country is very unlikely to take too long with expanding its CBDC trials as well as finishing all development processes.

    Unfortunately they can't. The problem with having a real currency that floats along with the market it is the rising tide raises all ships, and this is exactly what they have tried to avoid for decades. The US's evil capitalist plan worked in Japan. Intense investment, outsourcing, industrialization, unionization, middle class, rights, and finally an enduring Republic. When the plan finished this was taken to South Korea. Intense investment, outsourcing, industrialization, unionization, middle class, rights, and finally an enduring Republic. Old talks by Kissinger illuminate that this was the plan to be used against China to destabilize the CCP. Intense investment, outsourcing, industrialization, but then the plan failed because the CCP pegged the currency to keep the people poor. A poor repressed people cannot unionize, and why desire unionization when the state says it is your union while they work in the background to keep you down.

    If they go through with this but continue to peg the currency so money flowing into China only supports members of the party then we can see what really happened. Hiding debt and impending inflation. The one-two punch of the trade war and SARS2 has damaged their economy beyond easy repair, without a way to spring back fast enough to maintain social cohesion (repression and party rule). The final straw was the taking of HK for direct control of the HK bank, the traditional method of washing Yuan. The world has not yet trusted the Yuan, so they wash it through the HK dollar so they can purchase USD or Euros or whatever. When we responded by removing the special status for HK it ruined the HK dollar as their flow-through. The only method they have left to maintain their economy is to get rid of the Yuan, forge the numbers, and claim everything has always been okay.

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  • (Score: 4, Interesting) by Snotnose on Sunday August 23 2020, @10:16PM (6 children)

    by Snotnose (1623) on Sunday August 23 2020, @10:16PM (#1040935)

    Until Congress spends trillions of dollars on unemployment insurance, PPE stuff, small business bailouts, and post office bailouts.

    Seems to me neither party cares about the deficit anymore. Obama screwed over retirees by setting interest rates near zero, while fueling inflation. Trump is fucking clueless, as long as cash flows to him and his enterprises he's happy.

    Now with the whole Covid thing anyone that thought saving money for the future is an idiot. Spend Spend Spend, cuz that dollar you save today will be worth a dime next year.

    You can put me in that idiot category, I'm 62 and I've been saving all my life. My savings aren't worth shit today thanks to inflation.

    --
    Why shouldn't we judge a book by it's cover? It's got the author, title, and a summary of what the book's about.
    • (Score: 2) by corey on Sunday August 23 2020, @10:36PM

      by corey (2202) on Sunday August 23 2020, @10:36PM (#1040940)

      Government debt is similar to personal debt as an apple is similar to a tomato. Government debt is virtually fictional, and there's not much need to pay it off. However banks will hold you to paying back your personal debt. Governments can go print more money when the economy needs help, but people can't. It's a big balancing act to keep inflation under control.

      Giving people PPE, however is much more important than paying down fictional debt! Getting the country back to being productive ASAP should be your government's priority. Bailouts are important too, where it's legitimate.

    • (Score: 2) by JoeMerchant on Sunday August 23 2020, @10:52PM (2 children)

      by JoeMerchant (3937) on Sunday August 23 2020, @10:52PM (#1040944)

      Obama screwed over retirees by setting interest rates near zero

      Was this before, or after he did nothing in response to 9/11?

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      🌻🌻 [google.com]
      • (Score: -1, Flamebait) by Anonymous Coward on Sunday August 23 2020, @11:11PM (1 child)

        by Anonymous Coward on Sunday August 23 2020, @11:11PM (#1040949)

        Why would a muslim respond? The message was already delivered.

        Other than to celebrate of course.

        • (Score: 0) by Anonymous Coward on Monday August 24 2020, @05:21PM

          by Anonymous Coward on Monday August 24 2020, @05:21PM (#1041198)

          the Jews and US black ops did 9/11

    • (Score: 2) by SubiculumHammer on Monday August 24 2020, @03:47AM (1 child)

      by SubiculumHammer (5191) on Monday August 24 2020, @03:47AM (#1041028)

      Inflation? Really? What inflation. Sheesh. If its not housing or medical insurance, there hasn't been inflation for a long damn time.

      • (Score: 1) by Sulla on Monday August 24 2020, @07:11AM

        by Sulla (5173) on Monday August 24 2020, @07:11AM (#1041065) Journal

        But there should be, printing press goes brrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr

        --
        Ceterum censeo Sinae esse delendam
  • (Score: 2) by corey on Sunday August 23 2020, @10:41PM

    by corey (2202) on Sunday August 23 2020, @10:41PM (#1040942)

    I love that quote. Why the fuck is everything about combatting the US to the Chinese? They play this big act where they want people to believe that they just want to develop and grow like a good world citizen and don't want anyone meddling in their "internal affairs", but then you always hear this. They're obsessed with the US and outdoing them.

  • (Score: 2, Informative) by khallow on Monday August 24 2020, @01:12AM

    by khallow (3766) Subscriber Badge on Monday August 24 2020, @01:12AM (#1040983) Journal

    but then the plan failed because the CCP pegged the currency to keep the people poor.

    Pegging currencies to the US dollar was a standard strategy for both South Korea and Japan. Its risks are overstated IMHO.

  • (Score: 1, Informative) by Anonymous Coward on Monday August 24 2020, @04:27AM

    by Anonymous Coward on Monday August 24 2020, @04:27AM (#1041043)

    By devaluing the Renminbi, China has ensured a *rising* standard of living for its citizens. A nation devalues its currency to promote exports which leads to industrial demand and the associated jobs. Which leads to a tighter labor market and rising wages.

    China has a brutal authoritarian government that is guilty of many crimes, but they have done wonders in raising the standard of living for their people. The poverty rate in China has fallen from 88 percent in 1981 to 0.7 percent in 2015.

    https://en.wikipedia.org/wiki/Poverty_in_China [wikipedia.org]

    As for the rest of that revisionist history in your account, it is even further removed from reality. And, you might want to read up a bit about Kissinger-- you may decide you do not want to be associated in any way with such a monster.

    https://en.wikipedia.org/wiki/The_Trial_of_Henry_Kissinger [wikipedia.org]

    https://www.newyorker.com/news/news-desk/does-henry-kissinger-have-a-conscience [newyorker.com]

    http://fs2.american.edu/dfagel/www/Harper's%20Magazine%20THE%20CASE%20AGAINST%20HENRY%20KISSINGER_(former%20Secretary%20of%20State).htm [american.edu]