The crypto-currency chinese national could replace the yuan, according to a former high-ranking chinese official

According to a former senior officer of the chinese central bank, the yuan digital will bring to a close the era of the silver liquid. He underlines, in fact, that the new crypto-currency chinese has all the features to fully replace the methods of payments current physical.

The imminent yuan digital

The yuan digital of the central bank is currently in the initiation phase and arouses the enthusiasm of many chinese citizens, including the former president of the Bank of China, Li Hui. The senior official argues that the yuan digital could replace the cash.
However, in order that this crypto-currency chinese can establish as a means of payment dominant, it should fulfill four essential conditions.

“It will depend on its effectiveness, its lower transaction costs, its large-scale deployment and its acceptance by the people,” said Li Hui.

Li Hui also argues that in the near future, States will compete to make a crypto-currency that can be deployed to the international and feed the global trade.

“It is necessary to study as soon as possible the implementation plan for the issuance of a digital currency world, led by China,” said the former leader.

The risks of a crypto-currency supranational

However, the former leader of the people’s bank of China also discusses the drawbacks of a crypto-currency supranational, that would not be controlled by a central bank. Such a device could represent a threat to the national sovereignty of a country.
In particular, countries that are experiencing a galloping inflation, would be likely to completely ignore their national currency to adopt a crypto-currency anonymous. Such a decision on their part is motivated by the prevention against price volatility.
The current situation of the Libra did not fail to arouse the interest of Liu Hui. According to him, the stablecoin native of Facebook will be the trigger of the upheavals of the international monetary system, given that the crypto-currency is a worthy opponent able to “supplant the commercial banks in respect of the payment service, savings and financing,” said Liu Hui.
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