Quote from: Vishnu.Reang on Today at 05:37:15 AM

Quote from: holahola2021 on Today at 02:55:09 AM

With the issuance of electronic yuan, China's central bank has solved the problem between anonymous transactions and the need to crack down on financial crimes. The PBOC has said that user information will not be completely exposed to the bank. However, a highly likely user identity must be tied to a personal wallet, opening the door for authorities to access user transactions. This is something that the virtual currencies in the world cannot solve.

Authorities all around the world want to track financial transactions of their citizens. China is not an exception. In China, this is a priority topic because of the amount of capital outflow. Despite strict capital controls, China remains the top most country as far as outflow is concerned. No one wants to invest in the heavily manipulated CNY, or in extremely over-priced real-estate or local stocks. The Chinese economy looks like an inflated balloon now. It can burst at any time.

That is exactly the point. As long as China is manipulating it's currency no one is willing to use it as a refence currency. As long as the communist party stands behind the yuan the international community will not fall for switch from the USD. At the moment most financial derivatives and commodity contracts are either based on USD oder EUR. If you have cash in USD you can use it almost everywhere around the world. Not so with yuan. It's obvious China wants to become a super power and as such see their currency being used all around the world. This seems very unlikely at the moment.