Opinion
What Happens If China Launches Its Own Cryptocurrency
China is accumulating gold.
A few countries in the world have been busy buying up all the gold they can get their hands upon. In recent times China has become the ‘biggest consumer of gold’ in the world (see link below). China has also been slowly but surely reducing its exposure to US debt as well.
They’re collecting gold but why?
Some analysts suggest countries may be looking to gold because they suspect the global system of finance may move away from the dollar and toward other currencies.
You can already see this, Russia is pricing it’s oil in Roubles. Saudi Arabia is considering selling oil in Yuan. The shift away from USD is happening even as both Russia and China consolidate positions in gold reserves.
“Central banks have three main objectives when they are thinking about reserve assets: to keep their assets safe, to keep their assets liquid and to generate returns,” Natalie Dempster.
Gold historically has provided a store of value; we can clearly see our political adversaries moving in that direction
China has outlawed Cryptocurrencies
Again, why? Surely cryptocurrencies take some of the wind out of the US dollar. They provide alternate ways to settle transactions and store value without using American money.
So why ban crypto? The only thing that makes sense is that cryptocurrencies don’t serve Chinese interests. Although they draw attention away from USD, China cannot control the flows of digital currencies. But they certainly…
