China Creates Currency to Cancel-out Cryptocurrency

The Chinese government is on a mission to keep people dependent on government-controlled currency. China’s government has now devised a cockamamie scheme where they will use their central bank and commercial banks to distribute a newly created digital fiat currency in an attempt to trick citizens into believing that they have cryptocurrency all in hopes that the people will use the digital fiat instead of real cryptocurrency and stay government currency dependent. The fiat digital currency will be totally centralized and the plan is to replace the current currency, the yuan, with the new digital currency which right now is being referred to as Central Bank Digital Currency (CBDC). The digital currency will be issued to commercial banks via the central bank, and the commercial banks will, in turn, be able to distribute it to the people.

In regards to the new digital currency, Changchun Mu, The deputy director of the Peoples Bank of China (PBoC) made the following statement: "the two-tier issuance system will be helpful to restrain the public’s demands for crypto assets and strengthen the country’s sovereign currency.” With this statement the PBoC deputy director revealed the tricky hand of the government in which they want to curb the appetite of the people for cryptocurrency by making available a digital currency that resembles cryptocurrency but actually it is not. The statement also reveals that some people whether it be the Chinese government, the CBoC, the CBoC deputy director himself, or all of the above belive the Chinese people are easily fooled.

In my opinion, this is just another desperate attempt for government and banks to try to position themselves over crypto. The banks and authorities recognize the importance and power of cryptocurrency so they are willing to devise schemes in order to try and keep as many people as possible from getting into it. It is a shame that anyone thinks that a fiat digital currency will somehow trick a nation into not wanting cryptocurrency, and it is a laughing shame that the PBoC deputy director released a statement saying so. I do not believe for one second that this cockamamie scheme will fool the smart citizens of China and with the new digital currency ready to launch we shall soon find out.