Title: Is China's Central Bank Digital Currency a threat to the USD?
Website: www.pascalcoppens.com/
CONTENT. This video explains how China is getting ready to launch their Central Banks Digital Currency called DCEP as one of the first in the world. It is aimed at solving internal issues such as monetary policies, inclusion, transaction convenience and also criminal control; but it also will have external implications for America to put sanctions with USD on China. Most important, international trade will start favouring DCEP from China in cross-border transactions as it will be cheaper, faster and more independent than using the USD.
TRANSCRIPT
so we're always talking about this war between US and China whether it's an AI war or a space race or semiconductors or military i mean there's all these tensions but i think the
real possibility of a true war between China and America is actually going to be about money
it's going to be about finance paper money. Today the US dollar is dominating the world's money
and so what is happening these days is that for the past five six years since 2014 about we've
really seen china take off into the digital currency you can call it digital currency 1.0
it was about mobile payment now it's about face payment but it's really about connecting the
Alipays and the Wechat Pay with the bank account your bank account and everybody in China was using
it and and so most cities have become cashless in China where more than 90 percent these days are
using mobile payment on a daily basis and so this has changed society completely and unless you've
lived in china experienced it you might not really understand how that has changed the way of doing
business and i believe this is now going to in the next level but what we've seen the last six
nine months is really a complete change in the financial world and everything is about digital
you've seen bitcoin and other cryptocurrencies go really crazy, specifically when Elon Musk
said you can buy a Tesla now with Bitcoin. You've seen the Libra from Facebook that is now changed into
a Diem in Switzerland and that is now trying to make a stable coin launching at the end of
this year probably so it seems to be happening. You see Alipay that had to stop the IPO because
of regulators so there's a lot of discussion on on assets and what you need to keep on the books and
so on and then there's the CBDC this Central Bank's Digital Currency that
is actually been in testing for almost a year now since august last year and is completely changing
all the parameters of financial business so what is this all about well the digital currency 2.0
is the CBDC the Central Bank's Digital Currency and this is launched by the Beijing People's Bank
of China and many countries in the world are now investigating to do a CBDC i mean there's
already the Bahamas, there's Cambodia, there's many countries that are looking into this have
launched it already and you see even Europe is looking into it so this is a big thing happening
but when we look at the CBDC in China it's called DCEP that currency is the Digital Currency for
Electronic Payment DCEP and this is actually real money but it's digital money so it's like real
cash like paper money from the Tang dynasty or just be today what you use as well cash but
it's digital which means it sits on your phone and that means you can transfer it to someone without
having a need for a bank account and vendors who want to sell you something have to accept it
because it's like real money and that's the big difference with digital payment 1.0 with Alipay
and Wechat Pay you didn't really have to accept it although most people did now the big difference
with cryptocurrency specifically bitcoin, ethereum, and so on is that it's not on the blockchain.
I mean the bitcoin is about seven transactions a second and the DCEP is about 200,000
transactions a second same like Wechat or. Alipay the number of transactions is just so much the standard blockchain would just not work it's also centralized which means Beijing is actually controlling or the people's bank of china it's not decentralized so it's within one entity and so that creates a very different environment it's also not anonymous like cryptooften is you need the key to get access and but you don't really know who has that key and it's also mandatory so you have to use it or accept it as if it's real money so that's the big differences with crypto so kind of a different beast but it's based on encryption as well....
KEYWORDS
Pascal Coppens, China, innovation, trends, keynote, speaker, public speaker, CBDC, DCEP, digital currency, USD, currency war
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