Sunday, April 11, 2021

China's new "digital currency" may expire if you don't use it. The Chinese don't get the reason crypto currency is popular at all. Are these supposed to be smart people?

Unlike traditional central bank account-based currencies such as reserves, or decentralized cryptocurrencies like bitcoin, China’s digital currency would be controlled by the country’s central bank and will be instantly made available at a moment's notice to anyone who can receive it.

The digital yuan is also trackable, adding another tool to China’s heavy state surveillance. The government deploys hundreds of millions of facial-recognition cameras to monitor its population, sometimes using them to levy fines for activities such as jaywalking. A digital currency would make it possible to both mete out and collect fines as soon as an infraction was detected.

Further, and in a fit of complete insanity, the Chinese will make the digital yuan programmable.  They are testing the idea of making the currency have an expiration date.  If you don't spend it by, say, Thursday next week, it becomes worthless.  The idea is to encourage the velocity of money for times when the government thinks the economy needs a jump start. 

This is precisely the opposite of a cryptocurrency and has absolutely nothing to do with Bitcoin.  Bitcoin, for example, is not in theory controlled by any government, has a limited issue, so it can't be devalued by a government printing press, and critically, doesn't have an expiration date.

If the Red Chinese think anyone will be attracted to a currency that they completely control and can make valueless at their whim, they are gravely mistaken.

14 comments:

  1. If the Red Chinese think anyone will be attracted to a currency that they completely control and can make valueless at their whim, they are gravely mistaken.

    That implies they have a choice. I see it as more like another way to control the population. You get paid by the state if you're an obedient slave. If your social credit score falls, they can simply cancel some of your earnings. Empty your bank account.

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    1. Agree with SiGraybeard.
      I don't believe this is for "external consumption" (yet?).
      This sounds like a control grab over those who are already under the CCPs umbrella.
      ...and dontcha know that our current administration is licking their lips at the potential of implementing something similar here?!

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  2. Concur with both earlier comments. But what do you bet that they will induce some outsiders to use it because it will be the only "acceptable" currency for certain purposes, and the only way a Chinese company will be able to pay for imported goods. That way they use the access to their internal markets as a carrot to induce foreigners to accept it. And those "certain purposes" will expand. A way to start to wean themselves off of the world reserve currencies that are not the yuan (i.e., the dollar and the euro).

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    1. Like Muckey bucks in Disney World. Only digital...

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  3. I am too old (or stupid) to comprehend cryptocurrency. It is not backed by government, it only exists on a computer somewhere and if the computers crash, or get hacked....?
    If I had to invest in something, it would be precious metals - lead and tin.

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    1. The dollar has a value because you and I agree that it does and we are willing to use it in our dealings. If either one of us really objected to use the USD for a deal we could buy gold or silver and use that.
      If we wanted to use Bitcoin for our deal we could trade in our USD (or gold/sliver) for Bitcoins.
      It's what "we" want to use for our dealings that count & that would probably be the USD because most everyone accepts it.

      Of course the USD isn't what it used to be... not too long ago an eight foot long 2x4 was around $2, today it's closer to $6. There are still plenty of 2x4s to buy, it's just the USD just is not what it used to be....

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  4. I think this is a wonderful system and will make people healthier. How better to prevent someone from purchasing an other pint of Ben and Jerry's with the cashier telling you "purchase denied, only one every three months".
    The same when purchasing self-defense ammo.
    Pinocchio Joe will love this.

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  5. The Chinese have 1.4 Billion people who can be easily forced to use the electronic money.

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  6. "If the Red Chinese think anyone will be attracted to a currency that they completely control and can make valueless at their whim, they are gravely mistaken."

    The same can be said for those believing in Bitcoin.

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  7. You can bet the farm, your ass and your first born that the criminals in Mordor On The Potomac are planning the EXACT SAME THING for here. So they can steal ALL our money.

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  8. "If the Red Chinese think anyone will be attracted to a currency that they completely control and can make valueless at their whim, they are gravely mistaken.”
    How is that any different that the US government printing nearly $4 trillion in worthless currency in the last 12 months?

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  9. This is how they plan to pay Hunter in the future.

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  10. This is how they plan to pay Hunter in the future.

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  11. as my chinese neighbor would say(translated) "what the hell are the three shells for?".

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