"China is the biggest threat to the current world of money, as it plans to launch its Digital Yuan in 2020. Bloomberg stated that the crypto yuan, which may be on offer in 2020, will be fully backed by the central bank of the world's second-largest economy, drawing its value from the Chinese state's ability to impose taxes in perpetuity. Other national authorities are bound to embrace this powerful idea.
The shifting tide begs the question of what will happen to all other currencies if China and other nations begin to switch over to digital money? Will economics change, will trade wars increase and cause deeper rifts of the divide between nations? In the quest for power and control who are the losers? How will the U.S. respond, what do smaller countries do in the wake of imminent uncertainty? There are many unanswered questions, but the fundamentals remain. The world is so interconnected and dependent on trade that there has to be negotiation on all fronts."
Further reading here. I am researching connections between digital currency and national currencies and found a few interesting articles. Based on one of the articles, there are at least three debates on digital money:
(1) Digital money and the Blockchain will alter payments;
(2) Bitcoin is one more economic bubble;
(3) Digital money is counted as an asset.
The Wall Street Journal says Central Bank-controlled digital currency would be costly and less efficient and invade on individual privacy by tracking the dollar spend.
Pic. Which country is ready to go cashless?
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