China's Digital Yuan Threatens The Existence Of The US Dollar, This Is What America Is Doing To Anticipate It

Digital Yuan becomes a big threat to US dollar (Coincu)

JAKARTA – China is considered a danger to Western countries with its Digital Yuan. This was revealed by the Hayman Capital Management, Kyle Bass. According to him, China can export digital authority to other countries by leveraging its Digital Yuan.

Bass explained that China's digital money is a major threat faced by Western countries in the past 30-40 years. Although China's goal of making Digital Yuan is to stem cryptocurrencies, on the other hand, they are also considered to pose a major threat to Western countries.

“The Digital Yuan is the biggest threat to the West that we have faced in the last 30, 40 years. This allows China to put their claws on everyone in the West and allows them to export digital authority", Bass said as quoted by CNBC International.

In addition, the United States is also rumored to be creating its own digital money, the Central Bank Digital Currency (CBDC). Even so, until now the US has not launched its digital money. They are still in the research process.

The research is being carried out by the MIT Digital Currency Initiative with the Federal Reserve Bank of Boston. They focused their research on privacy, so they looked at the Chinese-made digital currency, the Digital Yuan.

“I think if there was a Digital Dollar, privacy would be a very important part of that. The United States is very different from China", said Neha Narula, director of the MIT Media Lab's Digital Currency Initiative.

In addition, they also focus research on access. According to data from the Pew Research Center, there is 7 percent of Americans who do not use the internet, 9 percent of blacks also do not use the internet, as many as 25 percent of Americans aged 65 years and over also say that they do not use the internet.

“Most of the work we do assumes that CBDCs will coexist with physical cash and users can still use physical cash if they want to”, Narula added.

A finance professor from Stanford University's Graduate School of Business, Darrel Duffie said that CBDC must remain a financial leader for the world economy. Therefore, digital money must have a clear strategy to stay as strong as the dollar.

“The United States must demonstrate its leadership in this area. It should push and develop a clear strategy on how to stay strong and take advantage of the dollar's strength", said Duffie.