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China, able to deploy its most powerful and friendly virtual revolutionary yuan, is paving the way for the design of bitcoin-like virtual currencies.
Governments around the world are struggling to adhere to the aspect of money-converting nature, announced just over a decade ago and turbocharged through Facebok last year, President Donald Trump exploded.
Now, an influential organization in China has revealed plans for a cryptocurrency formula in East Asia that can also see a basket of combined currencies to acquire bitcoins, the Facebook balance or it may also be dollar, while Trump grapps with the near effects of an induced effect coronavirus. Recession.
Proposals for an encouraging bitcoin cryptocurrency formula in East Asia that the Chinese yuan, the Japanese yen, the South Korean won and the Hong Kong dollar were presented this month at an assembly of the Chinese People’s Political Consultative Conference, a political advisory body.
The plans, developed through 10 members of the advisory corps, attracted attention due to the participation of notable figures such as Chinese center operator co-founder Cvacation and venture capitalist Neil Shen and Henry Tang, the former head of Hong Kong. secretary, according to a report by Nikkei Asian Review.
The regional cryptocurrency will be supported through the four currencies, but will be weighted according to its economic scale, with the Chinese yuan and the Japanese yen representing 60% and 20% respectively.
It is noted that the formula will create a network of cross-border payments to facilitate the attempt of foreign industry at a time when US-China relations are decisive and the United States is its dominant position in the dollar to punish conflicting countries.
Proposals are presented when China begins testing invoices in its new virtual currency in four major cities, local media reported beyond April.
Other countries around the world, adding Norway, Sweden and Japan, are running to digitize their own currencies.
China’s rapid expansion of its virtual currency program has led to urgent calls to drive the design of a virtual dollar.
However, the regulator’s intervention in Facebook’s planned virtual currency balance suggests that it will serve as well as a virtual dollar equivalent.
The Facebook Pound Association, a collection organized through social media to control virtual currency, unveiled revised plans in April that will see it as separate currencies subsidized through individual fiat currencies such as the dollar and the euro.
Meanwhile, underlining the challenge facing Donald Trump and the Federal Reserve, some economic analysts have begun to wonder whether the dollar would be able to maintain its position as the dominant reserve currency in the world.
“Faced with Washington’s ill-planned preference for economic decoupling with China, which will finance a country’s savings deficit that, after all, lost its exorbitant privilege,” asked Stephen Roach, a professor at Yale University and beyond the president of Morgan Stanley Asia. , in a writing painting in Bloomberg.
“Like Covid-19 and racial turmoil, the fall of the almighty dollar will cast global economic leadership of a saving-short U.S. economy in a very harsh light.”
I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported