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CZ Sees China’s Crypto as a Play to Threaten US Dollar Hegemony

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A lot of conversation in the cryptocurrency community has been centered around what China is aiming to do with its elusive digital currency. Some feel it is a tool for Chinese control over finance, although that could be disproved if early rumors are to be believed. Others. Such as Binance CEO Changpeng Zhao, feel this is a chance for China to compete globally. 

Not much is known about the makeup and intention of the Chinese cryptocurrency. However, there are a few crumbs that give information as to what is on the cards. Recently, it was even hinted at that this form of payment will be less controlled and more anonymous than first thought. 

Now, the head of Binance, Zhao, has also shared his thoughts on what this Chinese digital currency could be and what it could do for China, who looks to position themselves as a global technological superpower in the future. 

China has been reiterating its stance towards blockchain recently, and the fall out from this has been both positive for crypto, as well as the country. In fact, there have been concerns that China’s decision to fully embrace blockchain, and take on cryptocurrency slightly on the sly, will leave other competing superpowers in the dark.

In fact, Zhao has said that he feels China’s decision to set up its own digital currency could be a way to try and take some of the power away from the US dollar as a global reserve. 

Speaking on Thursday at BlockShow Asia 2019, Zhao shared his thoughts on the digital currency in development by the People’s Bank of China. 

The details of this currency are not officially known. It will certainly not be as decentralized as Bitcoin as it will be issued by the central bank, and because of this, he Zhao thinks it is going to be a blockchain-based version of RMB. He explained his reasoning: 

“The Chinese government wants to push RMB’s influence globally. They want RMB to be competitive with the US dollar. In order to do that they really need to push this currency to have more freedom,” he said.

While this move by China could be seen as one to gain a competitive edge in the political sphere, Zhao is not fussed either way, he feels that having China back the technology underlying Bitcoin will always be a positive move. 

“Having is better than not having. Having stablecoins is better than not having them. Having Libra is better than not having it,” he said in relation to Chinese inclusive blockchain attitude.

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

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