After the coronavirus caused China to shut down most of its businesses, and cities, the country is now striking back hard by releasing a digital currency and national blockchain.
China’s central bank The People’s Bank Of China, began testing its new digital Yuan’s interface on April 14th with one of its largest banks, the Agricultural Bank of China, rolling out a test UI. Two weeks later, there are reports that a pilot has been launched. Nineteen restaurants and retail establishments including popular Western restaurant chains like Starbucks, McDonald’s and Subway are participating in the test, Bitcoin.com reported. The test run is taking place in at least four cities in China—Shenzhen, Suzhou, Chengdu and Xiong’an, according to China’s central bank which confirmed the test of its new digital Yuan officially called “Digital Currency Electronic Payment (DCEP)” to the Wall Street Journal.
That’s not all, China also launched its Blockchain Service Network (BSN) for domestic and global commercial use. China also announced a 71-person committee for its Blockchain which includes executives from China’s central bank, as well as tech giants Baidu and Tencent, according to an announcement from the country’s Ministry of Industry and Information Technology (MIIT.)
Last year, Max Keiser of the Keiser Report told Kitco News that China was backing the new digital Yuan with gold.
“[China] is rolling out a cryptocurrency, a lot of the details have not been divulged. I can tell you that the cryptocurrency that China’s rolling out will be backed by gold. It’s a two-pronged announcement. Number one, China’s got 20,000 tonnes of gold, number two, we’re rolling out a crypto coin backed by gold, and the dollar is toast,” Keiser told Kitco News.
This author also had his own source from the Bank for International Settlements (BIS) saying much of the same for years, in which I wrote up two articles explaining the shift from the West as the world reserve currency. Those articles were entitled: “A Shift Of Power: Russia and China Finalize Moves To Replace U.S. Dollar As World Reserve Currency” and “China Finalizes Moves On Oil Markets To Overthrow U.S. Petro-Dollar Dominance As World Reserve Currency.”
Both articles detail numerous financial moves that China has taken in the past 10 years. One of which was buying up gold from the U.S. as a WikiLeaks cable titled “China increases its gold reserves in order to kill two birds with one stone” details.
China again began stockpiling gold in 2013, when they bought JPMorgan’s building that previously housed its gold. The IMF and United Nations have even expressed agreement that it’s time to replace the U.S. dollar as the world reserve currency with what’s known as SDRs or special drawing rights . Then the Asian Infrastructure Investment Bank (AIIB) was planned between 2010-2012, and was fully operational by 2016.
“China has been pushing for the SDR to become more widely used for some time, as a way to challenge the dominance of the dollar without pushing the renminbi as a direct competitor,” Julian Evans-Pritchard, a China economist at Capital Economics in Singapore, told Reuters.
Although currently it is not known if China’s digital Yuan is backed by gold, it wouldn’t be at all surprising. China opened up its own gold market in 2016, an entirely separate system than the COMEX gold futures market in New York and the Over-the-Counter (OTC) trades cleared through the London Bullion Market. China and Russia have both been working to undermine the West and the U.S. dollar since China called for a new world reserve currency as early as 2009.