In 2021, because of its major campaign against cryptocurrency users, China has made headlines. Will it be the same in 2022? For some experts, the country will continue to lead its tireless fight against electronic currencies. However, it would be a big mistake to believe that it is lagging behind other countries which more or less tolerate the use of these assets.
China overtakes other countries
In 2022, according to macroeconomist Lyn Alden, China could increase the pace at which it battles cryptocurrency. We could then believe that it will lag behind compared to other countries in which no ban has yet weighed on cryptocurrency users. However, according to the economist, that would be a big mistake.
According to Ms. Alden, China is ahead of its western rivals in the field of research and experimentation by launching its own “ programmable currency “. In this regard, the macroeconomist emphasizes that China has been a visionary country that did not wait for others before launching.
“It seems that a lot of countries have actively tested it [en référence à la monnaie électronique de banque centrale, NDLR].Lately, we have been hearing Western central banks talk about exploring this sector while China has already tested the environment and has been able to take its marks since 2014.”Says Lyn Alden.
The reason for the fight against cryptocurrencies
In her explanation, Ms. Alden also indicated that in the past, China was a country whose financial system was based at least in part on the dollar as well as on imports, especially energy and food. This form of developed dependence on the outside has made the country vulnerable to economic sanctions.
According to the macroeconomist, it is in order to get out of the framework of dependence and keep business relations running to its advantage that China issued and tested the CBDC. She could make it a practical tool for “negotiate with international partners outside the SWIFT-based banking system“,notes the professional.
To sum it all up, the macroeconomist comments on China’s advances in the area of CBDCs saying: “The Chinese don’t want another country to stop them from buying raw materials and trading with their partners“. For her, it is not because China is fighting against cryptocurrencies that it is necessarily against innovation, and even against assets.
China would simply seek to improve its trade situation by moving away from dollar reserves and making its own digital currency easier to transfer across borders. According to macroeconomist Alden, this is why she is waging a “war” against cryptocurrencies. But it seems that this “war” is not about to end.
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Behind the generic signature “TCT editorial staff” are young journalists and authors with specific profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.