China Strikes Back at The US: ‘Stop Making Trouble’ Out of Digital Yuan

China Strikes Back at The US: ‘Stop Making Trouble’ Out of Digital Yuan

The Foreign Ministry of China urged the US politicians to “abide by the spirit” and stop making trouble out of its central bank digital currency. Previously, three American senators warned that the U.S. Olympic Committee should forbid any usage of the e-yuan at the Winter Olympic Games next year in Beijing.

The US-China Confrontation

The tension between the two economic Superpowers – the USA and China – seems to have risen months before the start of the Winter Olympic Games. During a recent press briefing, the spokesman of the Chinese Foreign Ministry – Zhao Lijian – addressed the American politicians and urged them not to make trouble out of the e-yuan. He went further, stating that the USA is not aware of what exactly digital currency is:

“We suggest they figure out what a digital currency really is. The US politicians should abide by the spirit stipulated in the Olympic Charter, stop making sports a political matter, and stop making troubles out of the digital currency in China.”

Zhao Lijian
Zhao Lijian, Source: Financial Times

Earlier this week, the Republican Senators – Marsha Blackburn, Roger Wicker, and Cynthia Lummis – alerted that China might use its CBDC for spying and espionage during the 24th Winter Olympic Games in Beijing next year:

“Olympic athletes should be aware that the digital yuan may be used to surveil Chinese citizens and those visiting China on an unprecedented scale, with the hopes that they will maintain digital yuan wallets on their smartphones and continue to use it upon return.”

On the other hand, China seems certain to grant athletes and foreign visitors the opportunity to use the CBDC during the event. The deputy governor of the People’s Bank of China – Fan Yifei – pointed out that the Winter Olympics in 2022 would be the next key trial for the digital yuan, adding that the central bank had “the confidence to continue increasing the scope of the trials.”

Do China’s Ambitions Include Only Its CBDC?

Recently, the Asian country launched several actions against dealing with cryptocurrencies. As an example, in late May, the Financial Stability and Development Committee of the State Council of China reiterated the ban on Bitcoin mining and trading. Following the announcement, BTC’s dollar value plummeted by nearly $5,000 in a matter of one hour.

However, the financial analyst and Global Head of Equity Strategy at Jefferies – Christopher Wood – has a different opinion about China’s unfriendly crypto attitude. He stated that the Chinese authorities did not impose the crackdown because of environmental concerns but only to clear the way for the CBDC.

Wood predicted that the most populated country is very close to launching its digital yuan as he expects that to happen at the end of 2021:

“China does not want any competition when it launches the digital renminbi nationally, most likely in the fourth quarter of this year.”

editorial staff

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