Before, many people’s understanding of the digital currency was only speculative operations such as Bitcoin, but now, perhaps for many domestic investors, a real and compliant digital currency opportunity is right in front of them.
The reason for making such a judgment is actually an interpretation of the signals released by the management many times recently. Of course, everyone's interpretation is different, so this is for reference only. The first is the "China Foreign Exchange Management and Reform Seminar" held on July 9. Former central bank governor Zhou Xiaochuan put forward a precautionary theory, saying that the emergence of Facebook's Libra heralds the huge potential of cryptocurrency, which has great potential for legal tender. The threat is very great, and it is likely to replace the status of legal tender and become a new international currency. The process of convergence and integration of RMB domestic and foreign currencies, and the process of RMB internationalization, need to consider the pressure and impact of this trend. Secondly, in an article on August 9th, the management expressed its opinions on supporting Shenzhen in building a pioneer demonstration zone of socialism with Chinese characteristics, and once again mentioned supporting the development of innovative applications such as digital currency research and mobile payments in Shenzhen.
We have been talking about the internationalization of the RMB and the de-dollarization of for many years. At this time, the management said that it would speed up the launch of digital currency. In fact, it can be understood that in the context of continued trade disputes, the trade dispute will evolve into a currency dispute. No one can predict this, and once currency disputes enter, how to deal with the US dollar system is a problem. If the introduction of digital currency can be accelerated, it will be a preparation for de-dollarization and possible problems with the US dollar system. So I personally feel that perhaps there will be new developments in digital currency in the next few years.
My discussion may not be completely correct, but I hope it can give you a better understanding of the matter, and I hope this can help you better understand the matter itself.
Author: Xingchen Lake
