China’s digital currency is a threat to dollar dominence
Repost from 4-14-2021
“Markets have been gripped by cryptocurrency fever. The price of bitcoin has attained new highs while debate has raged over the emergence of cryptocurrency technology. But these may be a sideshow for a big developing trend — the rapid digitalisation of the renminbi.”
USAGOLD note 1: What other central banks, China is getting ready to launch – and Hasentab, the chief investment officer at Templeton Global Macro sees both enormous benefits for the global monetary system and a possible undermining of the dollar’s dominance as the world’s top reserve asset. If what he says turns out to be the case, it would likely increase the appeal of owning gold as a hedge against dollar depreciation.
USAGOLD note 2: Though Hasentab does not mention gold, we would add that there is also the outside chance China might somehow deploy gold in its digital scheme to give its version of cryptocurrency greater credibility. It is, after all, the number one producer of gold and rumors persist that it owns significantly more gold than it is reporting. (The image above includes an artist’s rendering of a digital gold yuan token)