China could become the world’s first country to introduce a state-backed digital currency. The People’s Bank of China on September 19 announced its digital currency was ready for launch, although the central bank did not say when the virtual money would become available. The DECP (Digital Currency Electronic Payment) will be exchangeable for one renminbi (RMB) and be distributed by state-owned banks and possibly digital payments firms like Alipay and WeChat. Users will buy DCEP, store them in a digital wallet and trade them instantly for goods and services....Merics
PBOC says world’s first state-back digital currency ready for launch
2 comments:
“The Chinese central bank also knows more RMB usage could lead to the RMB appreciating against the dollar [bold added]
I've been saying for years that allowing everyone to use fiat would INCREASE the DEMAND for it.
and pose a risk for domestic employment.
Not a problem since I've also said for years that the risk-free debt of a monetary sovereign, including its fiat, should have NEGATIVE* returns and that should DECREASE the DEMAND for it.
As nice as launching the first central bank-backed digital currency would be, there are also some good reasons to wait.”
Not really as I've pointed out.
[addendum]
It would be very ironic that Communists are more ethical wrt fiat use than the so-called "Christian" US. The shame of it!
* to avoid welfare proportional to account balance.
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