The digital RMB is not Just a new form of money. The digital RMB is an entry ticket into something new, and the new thing is China logistics network.
Chiba using 5G, using blockchain, using all these new technologies is already in place in China and now expanding will allow you to purchase something digitally. You can buy your container full of refrigerators, you can document it to customs. You can get the container onboard the ship. Everything will be part of a massive logistic system. So if you are BRI Country and you push the button to say “BUY” with digital RMB, you will get a delivery date at your doorstep and you are done.
the funny thing is that most people in the finance community -where I spent most of my career, 18 years or so- are simply looking at the digital RMB as another firm of money and they do not réalisé that it comes with a digital logistic infrastructure, which is digital trade finance, and its digital shipping, and it’s monitoring where your packaging is from the factory, the road, on the ship, it’s really remarkable.
The Chinese government asked to develop the digital yuan with 3 mandates:
- Spend like cash
- Transfer without access to a digital network (no signal, no internet required)
You can put money on the card rather than your phone.
Western crypto and Chinese will coexist peacefully in different universe.
You will see you in 2022.
- Bahamas is doing crypto as CBDC.
- Eastern Carribean union
- Brit coin
- EU Looking at it
- Canada is further along than the United states
83% of countries are looking into it
There is an advantage to trade with China using digital RMB as opposed to using the traditional banking system.