{"id":2951,"date":"2022-08-05T08:46:25","date_gmt":"2022-08-05T08:46:25","guid":{"rendered":"https:\/\/acudc.com\/?p=2951"},"modified":"2022-08-05T08:46:25","modified_gmt":"2022-08-05T08:46:25","slug":"chinas-crypto-could-become-a-global-reserve-currency-circle-ceo","status":"publish","type":"post","link":"https:\/\/acudc.com\/zh\/chinas-crypto-could-become-a-global-reserve-currency-circle-ceo\/","title":{"rendered":"China\u2019s Crypto Could Become a Global Reserve Currency: Circle CEO"},"content":{"rendered":"

CircCircle CEO Jeremy Allaire believes that China\u2019s developing \u201ccryptocurrency\u201d could propel the yuan<\/a> to worldwide renown as a global reserve currency.<\/p>\n\n\n\n

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                                                                                                                                \"\"<\/figcaption><\/figure>\n\n\n\n

Speaking to CNBC\u2019s<\/a> Squawk Box, Allaire highlighted the budding prospects of the central bank digital currency (CBDC), suggesting that it could act as the \u201cmechanism\u201d for worldwide adoption of the yuan.<\/p>\n\n\n\n

\u201cI look at this really meeting several goals. But, I think the bigger opportunity here is this is a way for the Chinese yuan to be distributed globally.\u201d<\/p><\/blockquote>\n\n\n\n

For Allaire, China\u2019s foray into the digital currency market heralds a pioneering step for the proliferation of CBDCs, and indeed cryptocurrencies. Allaire also expressed hopes for interoperability between the CBDC and Circle\u2019s USDC \u2013 a stablecoin<\/a>pegged to the U.S. dollar<\/a>.<\/p>\n\n\n\n

\u201cFor us, we\u2019ve been working for multiple years on the U.S. Dollar coin that\u2019s been growing very fast. And I think that we\u2019re excited to see how things like the Chinese central bank digital currency could eventually interact or be traded with things like U.S. Dollar coin.\u201d<\/p><\/blockquote>\n\n\n\n

China\u2019s Crypto Is a \u201cMajor New Development\u201d<\/h2>\n\n\n\n
\"\"\/<\/figure>\n\n\n\n

Despite issuing a blanket ban on cryptocurrency trading in September 2017, the People\u2019s Bank of China has been actively involved in digital asset research and development. | Source: Shutterstock.<\/p>\n\n\n\n

Pointing out the vast array of digital assets on the market, Allaire differentiated between several types; remarking upon non-sovereign currencies such as bitcoin<\/a>, as well as equity-backed tokens. However,  he suggests that among all others, fiat-backed digital currencies, such as the Peoples back of China\u2019s (PBOC)<\/a> venture, stand as preeminent.<\/p>\n\n\n\n

While clearly holding the Chinese enterprise in high esteem, the Circle CEO also conveyed the belief that these \u201cglobal units of accounts\u201d will require baskets of reserve currencies, of which bitcoin could be a part.<\/p>\n\n\n\n

Allaire also mentioned some of the key capabilities of the CBDC, specifically citing its superfluous range, noting, \u201cit can go anywhere the internet can reach.\u201d This sentiment echos that of Changchun Mu, the head of china\u2019s digital currency, and his estimations of the emerging project.<\/p>\n\n\n\n

Mu recently<\/a> relayed several characteristics of the CBDC, implying that it had similar qualities to that of Facebook\u2019s Libra<\/a>; including operability across major Chinese payment platforms, such as Alibaba<\/a> and Tencent.<\/p>\n\n\n\n

A SWIFT Farewell<\/h2>\n\n\n\n
\"\"\/<\/figure>\n\n\n\n

Proponents of bitcoin and other virtual currencies believe SWIFT\u2019s payment system is ripe for disruption. | Image: Shutterstock<\/p>\n\n\n\n

Allaire\u2019s glowing report didn\u2019t stop there. He concluded by stating that China\u2019s crypto was \u201cquite strategic\u201d in that it could \u201cbypasses the Western banking system, SWIFT\u201d; a feature that many cryptocurrencies already claim.<\/p>\n\n\n\n

Interestingly, SWIFT<\/a> recently called cryptocurrencies and their unfettered derivatives out as \u201cuseless and unstable.\u201d<\/p>\n\n\n\n

They go down in value like a yoyo, they\u2019re useless and unstable. And even if crypto companies do make is stable, it\u2019s still a basket of currencies.<\/p><\/blockquote>\n\n\n\n

Forgoing any mention of the PBOC\u2019s venture, SWIFT instead praised Libra<\/a>; relaying that it could disrupt remittances in the short term.<\/p>\n\n\n\n

However, SWIFT isn\u2019t completely oblivious to its own shortcomings; representatives did take note of how lagging their legacy system was:<\/p>\n\n\n\n

\u201cIf you want to send payment [with SWIFT] from Australia to China after midday, you instantly have a 12-hour delay because of opening hours.\u201d<\/p><\/blockquote>\n\n\n\n

Regardless of whom you side with, innovations such as Libra, China\u2019s CBDC, and indeed bitcoin, possess the capabilities to eradicate the need for legacy systems such as SWIFT; potentially even becoming a global reserve currency. Allaire\u2019s money, however, is clearly on China.<\/p>","protected":false},"excerpt":{"rendered":"

CircCircle CEO Jeremy Allaire believes that China\u2019s developing \u201ccryptocurrency\u201d could propel the yuan to worldwide renown as a global reserve currency. Speaking to CNBC\u2019s Squawk Box, Allaire highlighted the budding prospects of the central bank digital currency (CBDC), suggesting that it could act as the \u201cmechanism\u201d for worldwide adoption of the yuan. \u201cI look at this really meeting several …<\/p>\n

China\u2019s Crypto Could Become a Global Reserve Currency: Circle CEO<\/span> \u67e5\u770b\u5168\u6587 »<\/a><\/p>","protected":false},"author":1,"featured_media":2952,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[15,9],"tags":[],"_links":{"self":[{"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/posts\/2951"}],"collection":[{"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/comments?post=2951"}],"version-history":[{"count":1,"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/posts\/2951\/revisions"}],"predecessor-version":[{"id":2953,"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/posts\/2951\/revisions\/2953"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/media\/2952"}],"wp:attachment":[{"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/media?parent=2951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/categories?post=2951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/acudc.com\/zh\/wp-json\/wp\/v2\/tags?post=2951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}