Earlier this week, we covered the Federal Reserve's pursuit of a central bank digital currency (CBDC), based on the blockchain and dubbed "Fedcoin." It turns out that China is also pursuing its own version of a CBDC, and while the consequences of such a move for Americans would be very different than those of a Fedcoin, they have the potential to be even more dire. What's more, Beijing could be even closer to implementation than the Fed is.
Kung Hei Fat Choi: The Story of China’s Digital Yuan Project (2020, Medium)
It was on Thursday, July 11th 2019 that the former Peoples Bank of China governor Zhou Xiaochuan told an event in Beijing that Facebook’s Libra project was a ‘new risk’ that should motivate the government to ‘make good preparations and make the Chinese yuan a stronger currency’. This ‘new risk’ of Facebook’s Libra cryptocurrency appears to have acted as validation to the ongoing tinkering of a Chinese organisation tasked to investigate digital currencies.