Will Bitcoin compete with the digital yuan?

by Edoardo Narduzzi

China's geopolitical aims with the digital yuan. The delays of the West. And the scenarios for Bitcoin. The analysis of Edoardo Narduzzi, President gAIn RoboWealth

Bitcoin has been fully invested by the most important geopolitical crisis since Yalta and the impacts that this crisis will open up on the post-war world monetary balance in Ukraine. Xi Jinping's China has long outlawed both the activities of exchanges  in crypto currencies and those of mining, that is, the production of Bitcoin. In practice, China has closed its economic space to the possible presence of digital currencies not issued by a sovereign state and as such managed in a decentralized manner. The reason is quite simple: Beijing has long been organizing to launch its digital yuan, the first crypto currency issued and controlled in its production and exchange mechanisms by a central bank. It is in some ways the contemporary equivalent of the space race to land first on the Moon that, at the time of the Cold War, pitted the Soviet Union against the United States. China wants to be the first nation to equip itself with a digital currency by communicating to the world that what until two or three decades ago was only the manufacture of the planet and a developing country is, today, a technological superpower. Being the first country to "mint" its own digital currency communicates more or less directly the growing ability to be competitive, perhaps even leaders, in artificial intelligence, cyber security and data mining systems. In this way, then, Beijing wants to offer a complete alternative to the dollar to many countries, especially in Africa, where cryptocurrencies such as Bitcoin have already been circulating for years and are well known by citizens.

Digital currencies are the new areas of geopolitical influence of the emerging world. They will  be in  the wallets of the inhabitants of this planet along with national currencies and what will remain of the world of Bitcoin and current cryptocurrencies. Every single transaction will be tracked and recorded and every exchange can be reconstructed forever. In some ways it is the almost ideal solution to ensure the oligarchic balance of in a centralized system potentially questioned by the continuous growth of the economy and technology.

And what will the future of Bitcoin be? If liberal democracies can withstand the ever-increasing impact that the Asian world will develop in the near future to the balance of open societies, then for BTC the future is rosy, because it will be one of the many competing digital currencies that will be hosted in our wallets to manage wealth, savings or payments. Liberal democracies, the American one first, have no and will have no interest in outlawing the best decentralized technological system that the human species has been able to invent to produce a unit of account. It will be more regulated, certainly. But Bitcoin embodies everything that wants to be erased in the war in Ukraine: the fact that innovation in liberal democracies is produced regardless of the decisions of political power. The correction in the price of BTC is perhaps not over yet and the minimum of ten thousand dollars could also become reality if the fall of the Nasdaq continues in the coming months, but this does not mean that one day in the near future the queen of crypto can not be traded at 100 thousand dollars.                          

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