https://www.gatestoneinstitute.org/17487/china-digital-currency
The real purpose of the new digital currency… seems to be… to challenge the long-standing global reign of the US dollar.
The new digital currency is part of the CCP’s ambition, as laid out in its new Five-Year Plan for the years 2021-2025, to digitalize China. The digitalization, in turn, is part of China’s ambition to become technologically independent of the West and to dominate global tech, and overtake the US as the world’s dominant power by 2049,” the 100th anniversary of China’s Communist Revolution.
Crucially, China’s new digital currency, in addition to increasing state control and surveillance in China.. .could affect the ability of the US, and other countries, to level sanctions at the Chinese government for its human rights abuses and other breaches of international law.
The US, on its part, does not appear ready for China’s challenge over the future of money.
“Not only are the American monetary authorities underestimating the threat posed to dollar dominance by China’s pioneering combination of digital currency and electronic payments. They are also treating the blockchain-based financial innovations that offer the best alternative to China’s e-yuan like gatecrashers at their own exclusive party.” — Niall Ferguson, historian, Bloomberg, April 4, 2021.
Communist China is adding another element to its toolbox of surveilling and controlling its population. Already known as the country in the world with the most pervasive surveillance and social credit system, China has now created a digital currency, the digital renminbi or yuan — also known as Digital Currency Electronic Payment (DCEP) — to ensure that hardly any transaction goes unregistered.
Unlike cryptocurrencies such as bitcoin, which are not issued by governments and therefore cannot be used as means of payment in most daily transactions, China’s digital currency is issued and controlled by China’s central bank.
According to the Wall Street Journal, the currency “is expected to give China’s government vast new tools to monitor both its economy and its people. By design, the digital yuan will negate one of bitcoin’s major draws: anonymity for the user.”
“DCEP is the antithesis of Bitcoin. The ultimate goal of a cryptocurrency is the separation of money and state,” said Stewart Mackenzie, a cryptocurrency expert based in Hong Kong. “It’s easy for them to say that it’s like Bitcoin when it’s worlds apart.”