Can digital currencies really destabilize dollar hegemony? How close is China to full digital monetization?
There are already many articles related to digital currency. This article no longer discusses the basic concepts of digital currency DCEP, but attempts to discuss several issues that are of general concern to everyone.
First of all, Flower Finance has written several concepts. Given that most people are in the cloud of digital currency, these concepts are basically ignored now, but they may become axiomatic things in the future, like 1+ 1=2 is the same as everyone knows. Of course, there may also be a concept that is completely wrong.
Digital currency is realized based on technological progress. It is a major change in the currency field and the development direction of currency. Electronic currency is the most primitive form of digital currency. Digital currency like Internazionale will definitely be realized.
Bitcoin and all other decentralized virtual (blockchain) currencies may not be worthless in the future, but digital currencies with real value must be digital currencies based on the credit of the central bank. In this sense, China is a pioneer.
Digital currencies that can truly be widely used and eventually replace paper currency and electronic currency are digital currencies that are truly valuable. Please note that this is a parallel condition: practicality and exclusivity.
The biggest obstacle to digital currency is the huge inertia of the existing political and financial system. The essence of this obstacle is people’s perception. Only China in today’s world can complete the digital currency reform because it has sufficient technical and economic strength at the same time, and Efficient government and citizens who are good at accepting new things.
The essence of this article is based on the understanding of the current information and guesses about the future situation. If you disagree, just read science fiction.
Let’s start with the hottest topic——
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Can digital currency really subvert the hegemony of the US dollar?
Recently, many self-media have said that digital currency can subvert the hegemony of the US dollar, but this problem itself is problematic.
The scientific question should be: To what extent can the digital currency CDEP, which is based on the credit of the People's Bank of China, affect the monetary system of the world today?
First of all, the trial of digital currency in my country is very fast* (from three or four cities to 28 cities and regions), but it is still experimental.
As mentioned earlier, digital currencies that can truly be widely used and eventually replace currency forms such as paper currency and electronic currency are truly valuable digital currencies.
Please note that there are trials for digital currencies. This is a prudent and common phenomenon, just like all other new policies and measures in my country are often conducted in some cities. But whether it is prudence or recklessness, this situation is impossible in the end:
The people in one city or multiple cities use digital currency entirely.
Beijing people use digital currency terminals, but Tianjin people still use bank cards and WeChat to pay? No need to think or guess, this is impossible.
Really valuable digital currency must be exclusive. Many people do not understand this. The reason is simple. If digital currency (within a country) does not have exclusiveness, then many advantages of digital currency are equivalent to nonexistence. (Such as asset transparency to prevent corruption.)
The upper-level team is trying hard to realize an alternative to the existing currency? Don't be funny, the ultimate goal must be full digital monetization! This sentence is hereby kept as a record, and you are welcome to save it for ten years. If it is not right, you will have a face.
Only the realization of comprehensive and exclusive digital monetization can have the greatest impact on the world's existing monetary system. If the reform is not thorough, it cannot be said that the US dollar hegemony will not be impacted, but the impact will be small.
The principle has been said by many people: China has been undertaking the loose monetary policy of developed countries for a long time, and has been anchored to the US dollar for a long time. It is deeply constrained by SWIFT and CHIPS. Not only China, but countries all over the world are basically monetary and financial before the Fed None of them wear underwear. Digital currency can bypass the US dollar payment system to a large extent (in principle, you can refer to the dark web for payment, which requires Bitcoin, which is difficult to regulate).
Digital currency is a weapon for de-dollarization. Once China proves that its financial system has not greatly affected the national economy and the people’s livelihood after the full digital monetization, the world’s major powers will certainly follow suit. Once this phenomenon occurs, it will be the whole world. The world is digging a grave for the hegemony of the dollar, and it is useless for the United States to worry.
But this day is still early, and again, it's only an experimental stage. Moreover, it is not only the digital currency to counter the hegemony of the US dollar. So you will see some media saying how digital currency can be-it is all IQ tax, which is currently impossible to achieve. It is optimistic that it can be achieved in 10 years, and it is not ruled out that it will not be achieved.
It is entirely possible that great powers will stalemate for a long time. The U.S. dollar hegemony must be maintained for a long time. Don't think that Americans are really paper tigers. When we offer digital currency, Americans will kneel. Underestimating the enemy is the same as surrendering.
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What are the obstacles to a fully digital currency?
Flower Finance has said before: In today's world, only China can complete the digital currency reform because it has sufficient technical and economic strength, as well as an efficient government and citizens who are good at accepting new things.
There are basically no obstacles that cannot be overcome at the technical level of digital monetization. The real obstacles are the existing international currency and political systems and concepts. The United States is the maker of the existing world system, so the United States is absolutely unwilling to see countries around the world start to start digital currencies backed by central banks.
Some people have said that the United States has a neutral attitude towards Bitcoin-yes, on the question of whether it is painful or not, Americans have always been willing to show the so-called democratic openness and freedom, but things that really hinder its hegemony, The United States can immediately stop talking about democracy and freedom, and this point needless to say. Combined with the recent American faces, everyone should understand.
It can also be predicted here that with the progress of digital monetization around the world, the United States will become the biggest obstructer, the European Union will stab the ground, and China will be the pioneer of the blue ray—in fact, it is already.
One of the obstacles to digital monetization is the perception of the people. Specifically, this is the so-called right to privacy.
In fact, there is basically no privacy in contemporary society, and privacy has become a relative concept.
For example, the British have always been arguing about surveillance networks all over the country. Well, this thing is called Skynet and Intelligent Transportation in our country. The ubiquitous cameras are actually a great deterrent to criminals. Of course, Ordinary passersby will also be captured by the camera.
There is no problem with this kind of thing in China. The people don't care at all, because everyone knows that this camera is used to supervise the order of the city and protect ordinary people.
But Westerners don’t think so. Westerners think this matter is an invasion of privacy. Although in fact, no matter how ordinary people are photographed by cameras, no one will watch them, but Westerners just feel that they deserve to panic. So the British have been arguing about this matter for more than ten or twenty years, and they are still arguing. I don’t know if they can build this surveillance network in 3020.
Why does Flower Finance say that only China is the first to implement comprehensive digital monetization? Because ordinary people will gradually know that this thing can curb corruption, prevent misappropriation of funds, and restrain money laundering. Although it is not completely decentralized like Bitcoin, ordinary people who care about buying a tea egg are recorded in the central bank. In the database? ——Anyway, the current consumption is also recorded in every pen. Few people in China use paper money anymore.
Full digital monetization is certainly not possible to completely make the management of officials clear and transparent in an instant, but it will limit money laundering to the greatest extent. The people are willing to do so. Therefore, at the conceptual level, China's implementation of digital currency is based on public opinion and is easily accepted.
Those who don’t accept... well, with all due respect, people who don’t accept probably dare not say their real reasons.
Going a little further, Hua Finance and Economics is going to talk about the difference between Eastern and Western civilizations. Whether the Western-style generalization and freedom is good or not, different people have different opinions. But the Chinese don’t think that way from top to bottom. The Chinese are more concerned about the overall strength. For example, during the Warring States period when Shang Yang’s reforms, some laws were particularly unhuman, such as private fights and punishment for private fights. . This law restrained the tired people to the utmost extent and strengthened the power of the public and warring states. It is also a law that ordinary people raise their hands to support, and individual people are unhappy.
As long as those who oppose things supported by the vast majority of the people in the name of freedom, their real reason is by no means so-called freedom. This is nothing like ancient and modern China and foreign countries!
From：On DarkNet – Dark Web News and Analysis
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