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Billionaire Kyle Bass: China’s digital currency should be banned in the US

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US hedge fund manager Kyle Bass said China’s communist regime plans to use its new state-controlled digital yuan as a tool to disperse its totalitarianism around the world. He thought it would have a devastating effect on the United States, which should ban it.

Kyle Bass: Chinese CBDC will have “its own mind”

In a recent interview, billionaire Kyle Bass argued that China’s digital yuan is a financial instrument the government intends to use to gain huge influence over other countries. He added that the project would provide a stronger economic position and greater control over the Asian superpower.

China's digital currency should be banned in the US, says billionaire Kyle Bass
Kyle Bass

Bass, the founder and CIO of Hayman Capital Management, warned that China’s digital currency could cause significant financial damage to the United States. He likened it to a “cancer” that would plague states if left unchecked:

“I think we should ban China’s digital currency and not allow it to be treated in any way in the United States. I know it sounds hyperbolic, but if you think about it, you can’t have a little cancer. You either have cancer or you don’t have cancer. “

What’s more, the digital yuan fits perfectly into the nature of the communist regime. Bass thought it would be a currency with an “own mind.” He would have access to private data such as people’s numbers and addresses.

The Chinese government could also require companies to adopt the central bank’s digital currency if they are willing to invest in the country. In addition, nations that are part of China’s Belt and Road Initiative (BRI, also known as One Belt, One Road) could be forced to use the digital yuan:

“They can force its use and imagine the impact they will have around the world if they hold our capital that way.”

China wants to be the first

The Chinese Communist Party makes no secret of its ambition to be the first major government to introduce the central bank’s digital currency.

For example, in early 2021, Asian authorities provided $ 4.6 million in CBDC to the people of Chengdu, the capital of Sichuan Province. The aim of this initiative was to test the effectiveness of the digital yuan. Last month, the Chinese authorities distributed an even larger amount, but this time to the people of Beijing. Residents of the capital received $ 6.2 million from the digital yuan.

CCPplan officials further expanded the scope of their pilot project by allowing athletes and foreign visitors to the 2022 Beijing Winter Olympics to use digital currency:

“For the upcoming Winter Olympics in Beijing, we have tried to make e-CNY accessible not only to domestic users, but also to international athletes and similar visitors.”

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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