China announced they have been developing a state sponsored cryptocurrency
We all knew this was coming, or at least thought it probably would.
China has been vocal about their dislike of the US having an unfair advantage by having their currency as the world's reserve currency.
How do you go about changing that?
Well you create a better currency and get everyone else to use it before they can create their own.
That would be their ultimate hope of course, but they likely aren't expecting that out of the gate.
Some of my thoughts...
I think this currency from China will succeed where bitcoin has failed...
I think it will succeed in being centralized.
It will succeed at being censored.
It will succeed at being manipulated by a central bank.
It will succeed at not being scarce.
And it will succeed in not being widely adopted by anyone outside of China.
In case you didn't catch on by now, I was being sarcastic about actually thinking it will succeed. :)
I think China's currency is going to be a glorified stable coin.
No other country will want to use one that was created by someone else.
That is the beauty of bitcoin
It just appeared.
No one can say for sure who the creator was.
It's not backed by a central bank.
It's much more similar to something like a natural resource, it just exists.
Other governments are much more likely to adopt this kind of value vs something someone else created.
It's more akin to gold in that regard.
For that reason bitcoin has a much better chance of being global money than anything China creates.
If anyone tells you China is going to destroy bitcoin by creating a better cryptocurrency...
Tell em...
FORGET ABOUT ITTTTTTT!
Stay informed my friends.
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-Doc