Sophia's Blog

Sophia's Blog

China is planning to issue digital yuan as a replacement to the dollar as a de facto international currency

China is planning to issue digital yuan as a replacement to the dollar as a de facto international currency

Digital Currency: The Chinese government really has gone into a fairly bizarre crackdown on its own tech company and billionaires.

They suddenly moved forcibly against one of their aspiring stars which were Didi and are also moving heavily to censor (well to even more heavily sensor) a lot of their own social media platforms.

These heavy-handed activities are making everyone nervous about China, as one analyst put it:” it is like they remembered all of a sudden that they are communists”

China is also cracking down hard on crypto, which people superficially is assuming is about energy consumption, but that is not it, there is a much bigger goal in mind, China is planning to issue and position the new digital yuan as a replacement to the dollar as a de facto international currency, by creating a currency that is as portable as crypto, able to be used directly from one entity to another without banks but still monitored by them.

Such a move is sure to start a whole another trade war, or at least a war-like situation.

So overall investing in Chinese stocks right now is very risky. The CCP clearly doesn’t get any pleasure from having Chinese stocks being traded in foreign exchanges, although the reason why isn’t totally clear.

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