Taiwan sees Ukraine war helping internationalization of Chinese yuan, National Security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. Bureau director answers. And the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. yuan too?
The war in Ukraine and Russia’s effective exclusion from the global monetary system could be an opportunity for China to raise the profile of its currency in a challenge to the U.S. dollar, a senior Taiwanese security official said yesterday, according to the agency’s publication Reuters.
Russia has said it is counting on China to help it withstand the blow to its economy from Western sanctions, and will use the yuan chino of its foreign exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. reserves after sanctions blocked its access to its U.S. dollar and euro reserves.
Answering questions in parliament, National Security Bureau Director General Chen Ming-Tong said China has always wanted a way to get rid of the dominance a measure of Bitcoin's value in the context of the larger cryptocurrency market. of the U.S. dollar and that the war could boost the use of the yuan.
“Whether in renminbi trading or in the currency currency is a medium of exchange that defines value. issuance system, this is an opportunity China must seize.” , dijo Chen, usando el nombre formal del yuan, que es renminbi.
It is worth noting that Taiwan, which China claims as its own territory, has raised its security alert level since the war, wary of Beijing making a similar move against it, and Taiwanese officials have been studying the lessons both they and China could learn from the conflict, he said. Reuters.
Will relations with the U.S. improve?
In addition, Chen Ming-Tong said the war could actually improve the Sino-U.S. relationship, but only if China decided to support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. the United States in the same way it did after the attacks on the Twin Towers on Sept. 11, 2001, which won the goodwill of the United States.
“The Ukraine-Russia war is perhaps another 911-style opportunity.” He said, referring to the date on which these events occurred.
Beijing has repeatedly expressed its opposition to sanctions on Russia and insisted that it will maintain normal economic and trade exchanges. It has refused to condemn Moscow’s action in Ukraine or call it an invasion.
But China is also said to be wary of its companies violating sanctions and is pressuring companies to be wary of investments in Russia, its second-largest oil supplier and third-largest gas a term used on the Ethereum platform that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps in the Ethereum network. It is the “fuel” of the Ethereum network. *see Gas Limit and Gas Price. supplier.
And the digital yuan too?
What Ming-Tong does not comment on in the article in Reuters is about what would happen to the digital yuan, the central bank digital currency (CBDC) that China has been working on – and testing – for many months.
It is worth noting that China has taken quite a while to massively implement the digital yuan as a currency, however, the progress in relation to it is remarkable. It has made important tests in some cities, as well as in services such as the ATMs and the transport system . Earlier this year launched a pilot version of its wallet a place where cryptocurrency users can store, send and receive digital assets. on Android and iOs. . Also in January, China’s largest messaging app, WeChat, added support for digital yuan.
There is quite a lot of adoption, by the way. In November 2021, it was said that 10% of the Chinese population (we are talking about a whopping 140 million people, as the population of China is 1.4 billion) will be adopting the new technologies. has a wallet for the Chinese yuan .
That is, a global yuan (replacing the dollar) would also be in the medium term a digital yuan as a global crypto, competing -with its very clear differences- with cryptocurrencies such as Bitcoin.
Sources: Reuters , archivo
Translation and version of DiarioBitcoin
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