At present, the Xi Jinping administration has some unrealistic illusions about the role of the digital renminbi. (Image source: Adobe Stock)
China was the first country to conduct digital currency research. As early as 2014,China Central BankOfficially launchedDigital RMBproject. In April last year, the digital renminbi test was launched in four cities, including Shenzhen. Entering 2021, the pilot scope will be expanded to more cities such as Beijing. Application scenarios gradually cover multiple fields such as life payment, catering services, transportation, shopping and consumption, and government services.Chinese Communist PartyLayout for 7 years, currentlyXi JinpingThe authorities have some unrealistic illusions about the role of the digital renminbi, and the official media who figured out Zhongnanhai’s intentions have exaggerated this.
However, the emergence of the digital renminbi has aroused the vigilance of central banks of various countries, and reports from the Chinese Communist Party’s official media have stimulated the nerves of various governments. Is the digital renminbi going to dominate? Will become a new weapon against the US dollar? The digital renminbi has taken the first step towards internationalization. Will Hong Kong, the bridgehead, become the home of the financial war?
For example, the Business Administration Department of the People’s Bank of China stated that it will test the introduction of digital renminbi in the Winter Olympic Games to be used for all payments for the Winter Olympics.
In order to promote the digital renminbi for the Winter Olympics, two batches of digital renminbi red envelopes were issued in Beijing in February and June, totaling 50 million yuan. Digital renminbi can be used for consumption. Officials have also launched some special products that support digital renminbi payments, such as ski gloves, badges, watches and bracelets.
Foreign athletes participating in the Winter Olympics can use digital renminbi wallets and allow foreigners to anonymously use renminbi for small payments. However, three U.S. senators have called for a boycott of the digital renminbi and wrote to the U.S. Olympic Committee and the Paralympic Committee, hoping to prohibit American athletes from using it.
The International Olympic Committee refused to accept the request of international organizations to change the venue of the 2022 Winter Olympics on the grounds of political neutrality and inability to change a country’s legal and political system. With the end of the Tokyo Olympics and the approaching of the 2022 Beijing Winter Olympics, the boycott problem is bound to increase gradually.
In addition, mainland Chinese media reports and securities company reports claim that from the perspective of legal digital currency, the global arms race has begun. This is not an alarmist talk. In fact, it has been used as a means of sanctions against the United States. In late March, Chinese Foreign Minister Wang Yi held talks with Iranian Foreign Minister Zarif in Tehran, the capital of Iran, and signed a 25-year China-Iran Comprehensive Cooperation Agreement. , Focusing on the settlement of digital renminbi for trade (including oil trade), judging that the effective cross-border application of digital currency will effectively prevent the United States from suddenly cutting off the clearing business between Chinese financial institutions and overseas institutions, the internationalization of renminbi and the implementation of digital currency Will accelerate synergistically.
The China-Iran agreement mainly includes three aspects: China’s investment in Iran’s energy and banking, telecommunications, railways and other infrastructure sectors; China and Iran’s oil and trade are settled in renminbi and digital renminbi; China and Iran will also further cooperate in the military field. , The agreement proposes joint military exercises, weapon development and intelligence sharing. At the same time, the Beidou satellite developed by the CCP will provide support for Iranian missiles.
You must know that the United States has imposed sanctions on Iran for a long time. The CCP has been secretly funding Iran before, for example, by providing cash to buy Iranian oil. Then, to sign a comprehensive cooperation agreement with Iran, this trick of the CCP is tantamount to picking out its attitude of confrontation with the United States.
Not only that, the CCP also hopes to use the digital renminbi to extend its tentacles into the international financial system. The first stop of choice is Hong Kong. The Digital Currency Research Institute of the Central Bank of China and the Hong Kong Monetary Authority have tested the cross-border use of digital renminbi in the mainland and Hong Kong. This is the first step, showing that cross-border transactions using digital renminbi are achievable.
And in April, the Digital Currency Research Institute of the Central Bank of China, the Hong Kong Monetary Authority, the Central Bank of Thailand, and the United Arab Emirates jointly launched a multilateral central bank digital currency bridge research project, aiming to explore the use of distributed ledger technology to realize central bank digital currency pairs. Synchronous settlement of international transactions 24/7.
Ren Zhongdao, a researcher at Tianjun Political and Economic Think Tank, pointed out that this is an attempt by the CCP to join other countries to challenge the status of the US dollar in international settlement.
Due to the turbulent political and economic situation, Hong Kong will be the most dangerous place in the global financial system. Finance must be the main battlefield of the Sino-US game, and Hong Kong is the bridgehead. Financial warfare is a war without gunpowder. It is easier than dispatching MQ-9 Reaper drones to beheaded. With psychological tactics, you can reach the enemy!
Hong Kong’s Chief Executive Carrie Lam said on August 10 that the SAR government supports the Central Government’s implementation of the Anti-Foreign Sanctions Law in Hong Kong by incorporating it into Annex III of the Basic Law. As a result, financial institutions in Hong Kong will be in a dilemma. If they fail to comply with US financial sanctions, they will be punished; if they fail to comply with the CCP’s Anti-Foreign Sanctions Act, they will also face litigation.
In this fierce financial war between China and the United States, no one will be spared if we do not avoid danger as soon as possible.
Editor in charge: Xin He Source: Look at China
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