China is preparing a financial weapon against the dollar and Bitcoin

Friday, 5 June, 2020 - 13:01

The Central Bank of China decided to cross the "banknote" with cryptocurrency and untie the circulation of money from the banking system

Thus, China wants to take money under state control. American experts are concerned about this, as the new currency could compete with the dollar.

The digital yuan of the Central Bank of China is designed to be an electronic version of a banknote or coin: it lives in a digital wallet on a smartphone, and is not in a physical wallet. Its value will be provided by the state.

Analysts believe that this virtual money will be faster and easier to use than paper. In addition, they will provide tremendous control opportunities to the Chinese authorities.

The digital version of the renminbi, experts say, may allow states to avoid US sanctions or make transfers in a way that Washington does not recognize.