The development with regards to China’s digital Yuan hasn’t slowed down amidst global COVID-19 concern. It was revealed on April 24 last week that three of the largest American brands, McDonald’s, Starbucks, and Subway, would be among the 19 companies participating in the digital currency trial.
Although a Starbucks spokesperson told media outlets that they were not participating in any digital currency trial, the rumour mill has already begun to indicate the intent of Chiná’s Central Bank.
Now that the narrative is getting thick and fast with China’s digital currency, Zou Pingzuo, a researcher at the People’s Bank of China’s Research Bureau, recently published an article. Pingzuo emphasized how China was trying to reduce the U.S.’s global influence and domination by the dollar while giving insights into how the Central Bank might think about the project.
The report stated that China’s digital currency’s main focus is on creating an innovative monetary system and developing a digital currency based on the human value that will make a major contribution both theoretically and practically to China and the entire human race.
The report also noted that a monetary system based on the scientific study of the value of people would eventually create greater value both economically and socially, whereas the monetary-policy transmission mechanism would trigger a value-creating process. The use of a blockchain-based account has been defined as necessary to create such a monetary system and it allows the generation of big data on the value of each individual.
The report added,
“An innovative digital currency combining the idea of “blockchain + human value” makes the currency a tool to discover, manage, create and implement value, integrate the measure of value function of a currency with the currency, and enhance the value creation function of a currency, thus fundamentally eliminating inflation and deflation.”
In addition, Pingzuo compared the currency system based on human value with the current U.S. dollar-centred system and indicated that the world needed saving from U.S. dollar hegemony and a “bloodsucking situation.”
The final statement clearly indicates that China’s Central Bank was looking forward to breaking the US dollar’s threshold and grip on the world economy with the newly proposed financial system.
Interestingly, it is important to note that, despite the use of blockchain, the monetary system would not be decentralized in any way possible. last year, when initial development reports were surfaced, various analysts and crypto proponents indicated that both the US and China were inclined towards a digital fiat in order to strengthen control over the population. Crypto enthusiast Richar Heart had stated,
“Nations want more control over their citizens. Nothing new…or good.”