An Expert Looked At The Digital Yuan A Different Way
The chief trader of the Genesis Block company Charles Yang believes, the digital yuan will face a pretty tough competition with Tether in the Asian market.
Reasons why USDT is so popular in Asia
The trader believes that the stimulation of the introduction of digital currencies in Asia occurs for two reasons.
- local investors tendency to large manipulations;
- cross-border cryptocurrencies, since there are quite strict restrictions on the withdrawal of capital in Korea and China.
“People just can't go through regular banking channels to send money to a different country. This is the major use case of crypto right now.” – he said.
Digital yuan is not suitable
Due to the fact that the state digital currency will fall under the same capital control rules, it will not be able to fulfill its main function, which USDT does quite well.
DCEP doesn't possess threat to the US dollar
Many experts believe that the release of the digital yuan casts some doubt on US leadership over the global financial system, but Yang doubts this.
“For instance, if China launches DCEP on theitsockchain, and they want other countries to accept it, these new countries need access to that data.”
Given the policy of maximum closeness of the PRC authorities, the expert questioned this scenario.