The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Lukewarm US, Red Hot China: Digital Currencies and Global Tech Wars in the Age of Blockchain

by OKEx Analysis
November 6, 2019
in HodlX
HodlX Guest Post  Submit Your Post
 

Digital currency electronic payment or “DCEP” has become the latest buzzword in the blockchain community, as China announced a series of blockchain initiatives amid capitalizing on this emerging technology. The country’s push on rolling out a digital version of the yuan could bring a significant impact to the global blockchain landscape, potentially accelerating the adoption of digital currency globally. From a macro perspective, what potential benefits could digitalizing a currency bring, and what impact can it have on monetary policy, financial stability, and integrity?

Racing to Digital

While lawmakers in the US were still questioning the potential security and legal issues of Facebook’s Libra, China seems to have moved one step ahead when it comes to digitalizing its currency.

Just this week, China revealed more details about its DCEP project. Initially, the People’s Bank of China will distribute the digital currency to all commercial banks and replace the Reserve Money (MO) system, reducing interbank transfer barriers.

After the system stabilizes, the central bank will additionally commercialize the digital currency by allowing major fintech companies to use it in their mobile payment systems. Officials claim that the DCEP project was six years of hard work and research, and it will share the same nature and legal status as the traditional fiat currency.

The swift move from China seems to make the country a global leader when it comes to the application of blockchain, and it could be the biggest monetary transformation in a decade. However, China’s ambitiousness could also lead to a new global “blockchain race”.

The United States has been largely lukewarm, if not negative, over blockchain and Bitcoin. Some lawmakers on Capitol Hill have expressed their opposition over the issuance of digital currencies, and the US Securities and Exchange Commission remains unconvinced by certain crypto-related financial products. President Donald Trump has also said that he’s not a fan of cryptocurrency.

However, China’s latest blockchain push could shift the tide in the US with the country taking a more proactive approach in this field, as the two superpowers compete on the technology front. A showdown in blockchain between the US and China is possible as we approach the year 2020.

Digital Currency: The Global Landscape

China may be leading the global digital currency game for now, but other countries may be catching up soon. New research from the International Monetary Fund shows that at least 15 jurisdictions, including China, have studied the possibility of digitalizing their currencies.

Jurisdictions Where Retail CBDCs Are Being Actively Explored

  • Australia
  • Bahamas
  • Brazil
  • Canada
  • China
  • Curacao & Sint Maarten
  • Eastern Caribbean
  • Ecuador
  • Denmark
  • Israel
  • Norway
  • Philippines
  • Sweden
  • United Kingdom
  • Uruguay
Source: IMF

The IMF also highlights that emerging market economies have shown the most interest in central bank digital currency because they believe it will be able to foster financial inclusion by reaching out to the unbanked segments of the population. In the case of advanced economies, countering operational risk and monopoly distortion, and reducing costs associated with managing cash were among major reasons for them to explore central bank digital currency or CBDC.

The Pros

Emerging market economies and advanced economies may have a clear rationale and motive behind their CBDC research. In general, a CBDC may be able to improve the efficiency of the payment system, reduce transfer costs, and encourage financial inclusion. 

In terms of payments, CBDC could address some privacy concerns of conducting transactions anonymously under a centralized environment, which could also curb the development of private forms of anonymous payments, reducing some of the anti-money laundering and counter-terrorist financing risks.

Peter Bofinger, monetary policy and international economics professor at the University of Wurzburg, believes that the digitalization of money has the potential to change the traditional structures of the financial system, redefining the roles of banks and central banks without wearing away the control of central banks.

The Cons

CBDC could potentially raise some new security concerns. The digital nature that enables easier transactions will also increase operational risks from disruptions and cyberattacks.

The IMF also notes that the demand for CBDC will not necessarily be very high initially, and it will depend on the attractiveness of alternative forms of money. If a continued low demand in CBDC occurs, it could increase running costs for central banks and other financial institutions. Additionally, the adoption of CBDC could curb the development of private forms of anonymous payments, and this move could increase risks to financial integrity.

Conclusion

It’s too early to make conclusions on the benefits of CBDC, as this is still largely in the beginning stage, and central banks and commercial banks are still in the process of evaluating the impact of digital currencies on the markets. However, many experts agree that the changes CBDC could bring are profound and widespread.

This post originally appeared on OKEx Blog. Read more.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.


About OKEx

OKEx is a world-leading digital asset exchange headquartered in Malta, offering comprehensive digital assets trading services including token trading, futures trading, perpetual swap trading and index tracker to global traders with blockchain technology. Currently, the exchange offers over 400 token and futures trading pairs enabling users to optimize their strategies.

Follow us on Twitter.

Check our latest press material on Press Room.

 
Check Latest Headlines on HodlX


Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements
 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • Sports Prediction App Pooky Launches Full Version of Its Play-and-Earn Game
    March 23, 2023
  • StormGain Launches StormGain DEX for User-Friendly Decentralized Crypto Trading
    March 23, 2023
  • KyberSwap Announces First-Ever ARB Token Liquidity Pools, Liquidity Mining and Trading Campaigns on Arbitrum
    March 22, 2023
  • Metacade Presale Hits Final Stage Before Listings, Raising Over $500,000 in Under 24 Hours
    March 22, 2023
  • Yesports Launches the Largest Esports Marketplace for Gaming Expansion Into Web3 Alongside 40+ Partners
    March 21, 2023
  • Metatime Raises $11M in Private Funding To Enhance Web 3.0 Ecosystem
    March 21, 2023
  • Coinfest Asia Is Back in 2023 Carrying the Theme of Web 2.5
    March 20, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$28,113.53
$28,113.53
0.8%
Ethereum
$1,803.63
$1,803.63
2.01%
Cardano
$0.363124
$0.363124
3.61%
XRP
$0.429435
$0.429435
4.29%
Dogecoin
$0.075922
$0.075922
0.01%

Spotlight

  • Legendary Trader Peter Brandt Says Bitcoin (BTC) Likely Targeting New All-Time High – Here’s His Timeline
    March 22, 2023
  • Coinbase Adds Highly Anticipated Ethereum (ETH) Scaling Solution Token to Listing Roadmap
    March 22, 2023
  • BitMEX Outlines Three Scenarios for Crypto This Year, Says Market Recovery a Likely Outcome
    March 22, 2023
  • Bitcoin Breakout in Sight As BTC Flashes 2019-Style Accumulation, According to Top Analyst – But There’s a Catch
    March 22, 2023
NBX Warsaw Summit Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl