According to various news sources and Simon Dixon, People’s Bank of China has announced China’s own digital currency. According to Mr. Simon Dixon, China is buying up gold and announcing digital currency to hedge against the upcoming biggest collapse of most fiat currencies in the world. Near the end of his video, Mr. Simon Dixon says people may adopt China’s digital currency, but this will encourage many more people to use Bitcoin. Mr. Simon Dixon thinks that Bitcoin is more attractive to people since it got no governments’ censures.
In my opinion, any government has the ability to outlaw Bitcoin. I think Bitcoin might not have such a bright future when China herself is creating a brand new digital currency. If China is going to be successful in convincing her own people and other peoples to use her digital currency, she can totally outlaw Bitcoin. Once Bitcoin is being outlawed in China, China’s own digital currency will continue on to be one of the future, central crypto currencies.
Of course, any other government besides Chinese government can follow China’s playbook and come up with another government’s digital currency. Thus, I don’t think China will be the only country that would create a government sanction digital currency. I guess it would be fun to see a government sanctions another with outlawing another government digital currency within one’s own territory.
In the video, Mr. Simon Dixon suggests that China may use the brand new digital currency to implement quantitative easing. Instead of printing more fiat currency, China may as well create the second tier monetary system such as digital currency to help ease the many debt related bubbles that fiat currency has been creating. It’s an interesting idea for sure, but I think only China would know what she will do with her brand new digital currency. I guess time will tell.
Check out Mr. Simon Dixon’s video on People’s Bank of China creates a Chinese digital currency in the video right after the break. Enjoy!