Posted 11 months ago | by Ben Armstrong
The Launch of China's Digital Yuan may be Delayed – CCP Looks Weak as US Pressure Mounts
It's been over eight months since COVID-19 has run rampant across the globe, closing down businesses and stopping economic growth in its tracks. China was the first country to discover the virus and now it is attempting to stage an economic recovery.
As businesses are working to operate again the Chinese government realized the current state of the economy is still fragile and has delayed the implementation of its long-awaited digital Yuan. China is dealing with massive natural disasters – as well as a CCP party purge that is reminiscent of Stalin's Russia.
“To cope with all sorts of uncertainties, the monetary policy requires greater certainty,”
The Chinese government has pushed financial institutions to issue cheaper loans and cut servicing fees to assist businesses and individuals that were heavily impacted by COVID-19.
The vice governor of the People’s Bank of China (PBOC), Liu Guoqiang believes that there is no need for change for other the meantime. It is unknown is these changes are due to the shifting makeup of the higher levels of the CCP – and if Xi himself is worried about too many new ideas.
China May be in Trouble
According to Reuters, vice governor Liu explained that the capital adequacy of the banking sector had decreased to 14.21%, but is still far above 10.5% according to regulatory standards.
The recent move by the CCP seems to be hasty, and it may be worried about the global economic collapse. The US and China are also facing off in the South China Sea – with two US carrier strike groups near Taiwan.
US carrier strike groups are generally accompanied by nuclear attack submarines, which is one area where the US holds a clear advantage over China.
While the US and Russia have loads of nuclear missile subs, China is the laggard in this department. Both the US and Russia have told media that they will respond with nuclear weapons in the event of a conventional strike, which could put China in a terrible position.
The US subs that are sitting off the coast of China could make Hiroshima and Nagasaki look like an elementary school field trip, especially given the number of dense Chinese cities within striking distance.
Maybe it is not an accident that US cities are empty, with rioters left to do as they will as the Pentagon anticipates Chinese retaliation to all of the old US population centers. As US residents spread out over the nation, the same kind of '12 hours of nuclear hellfire' strike that the US could put into play in China grows much harder to reciprocate.
Pilot Programs Still Seem to be in Place
Earlier this month, China launched its pilot program, testing out its digital currency electronic payment (DCEP) throughout the Greater Bay Area (GBA), covering major cities such as Hong Kong, Shenzhen, Macau and Hong Kong.
According to media the GBA is a, “major financial and tech hub in Asia” and the Chinese government has big plans for economic development and blockchain implementation within the GBA, with the digital Yuan at the forefront.
Recent rumors have also sprouted regarding the competency of the digital Yuan to make large transactions during its trial and how the digital currency could not be converted into legal banknotes.
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