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Businessman hand holding tablet and Yuan currency sign on digital map backgroung.Chinese Yuan digital currency and circuit background.Technology digital Financial and china cryptocurrency concept.
Businessman hand holding tablet and Yuan currency sign on digital map backgroung.Chinese Yuan digital currency and circuit background.Technology digital Financial and china cryptocurrency concept.

Why China Is Making a Bold Gamble With Digital Currency

“Controllable anonymity” means that all transactions between individuals are visible to the People’s Bank and trackable by the Chinese government

Last week, China announced the national rollout of the electronic yuan, a plan in the works since 2014. The e-CNY* or Digital Currency Electronics Payment (DCEP) was piloted last year in four major Chinese cities: The digital yuan resides in cyberspace, available on the owner’s mobile phone — or on a card for the less tech-savvy — and spending it doesn’t strictly require an online connection. It appears on a screen with a silhouette of Mao Zedong, looking just like the paper money. In tests in recent months, more than 100,000 people in China have downloaded a mobile-phone app from the central bank enabling them to spend small government handouts of digital cash with merchants, including Chinese outlets of Starbucks…

concept-idea-of-fed-federal-reserve-system-is-the-central-banking-system-of-the-united-states-of-america-and-change-interest-rates-percentage-icon-and-arrow-symbol-on-wooden-cube-stockpack-adobe-stock.jpg
Concept idea of FED, federal reserve system is the central banking system of the united states of america and change interest rates. Percentage icon and arrow symbol on wooden cube

Central Banks vs. Cryptocurrencies: Why the Growing Tension?

Modern Monetary Theory (MMT), which is gaining ground, holds that government should just print as much money as it feels it needs and then raise taxes to cover shortfalls

On the way to explaining how a cryptocurrency system might work, financial analyst Bernard Fickser asks readers to think about the crucial difference between money, as held by a private bank — we’ll call it Merchant Navy Bank — and a central bank operated by a government, say the U.S. Federal Reserve System (the Fed). In his short online book, The Creation of Money, Fickser distinguishes between private banks and central government banks. Private banks start with money that already exists. The money that Merchant Navy Bank lends for mortgages, for example, is contributed by depositors who agree to tie up their money for several years in savings certificates. In return, they get a higher than average rate of interest.…