The reporters of the Wall Street Journal have probably been a bit too focused on the WTI oil price that yesterday even dipped below zero at a certain point, for the news that they are breaking today is in fact a bit old… a week or so if I remember correctly.
(On a personal note, I miss the printed version of the WSJ which is no longer available in Europe. For some reason Rupert decided that it was no longer profitable to do this but the crackling paper is much nicer than scrolling through a phone. Call me old fashioned if you must.)
Still, the WSJ is right to mention crypto once again in their publication as the rollout of the Chinese ‘Digital Yuan’ is indeed a big step for the world of cryptocurrency.
China will apparently further develop its lead in cryptocurrency.
Whereas this weekend in Europe the Bank of England followed the Banque de France and also sent invitations to start blockchain projects for their own digital currency, Beijing is already way ahead.
Not only has China made peace with everything related to crypto and blockchain (President Xi Jinping was very anti-crypto until 2019), it is now even willing to pay out the civil service in its own digital currency.
Rollout as from next month
The Chinese central Bank Digital currency, or CBDC, will become part of the wages of state workers in Suzhou and Shenzhen from next month. As from then, they can choose the receive 50% of their travel budget paid out in CBDC, known in the European and American press as the “digital yuan”.
The payments of the digital yuan will be supported by four state banks: the Agricultural Bank of China, the Industrial and Commercial Bank of China, the official state bank or the Bank of China, and finally the China Construction Bank.
Knowing that this is a decision by the official state body in Beijing, there is no doubt that state workers will use the digital yuan immediately.
EOS, Tron, ETH and VeChain
This is possibly good news for any of the 4 following crypto-platforms. Allow me to explain.
On 13 April, the Ministry of Industry and Information Technology, also known as the CCID in China, sent out it’s ranking of preferred blockchain technology.
Although various voices in the social media sphere have stated that this is a ranking which can be bought, it is nevertheless already the 17th time they did so, and the top three hasn’t moved much.
The Chinese government seems highly interested in the technology offered by EOS, Tron and Ethereum. If the ‘digital yuan’ rollout become successful, expect various coins to profit.
Tron is not too surprising given the position of Justin Sun and his known friendship with Alibaba’s Jack Ma.
Ethereum is simply technologically keen and EOS had been the leading platform ever since the Chinese started publishing the ranking. This is mainly because China’s National Blockchain Platform will be compatible With EOS and ETH nodes.
The last one, VeChain, is a bit more technical to explain. The Chinese state media has been busy promoting and introducing this technology for months now.
In fact, the largest state-controlled media company, China Media Group (CMG), promoted the adaptation and acceptance of VeChain in various videos. The predominant state-owned media company for radio and television broadcasts, also known as the “Voice of China”, has published numerous informative videos about VeChain as part of the first Chinese state-run 5G app “Yangshipin.”
Sun Tzu strategy
My take on this one is that the Beijing government is following the old Sun Tzu adage of keeping multiple options open for as long as you can. It will be interesting to see which coin is promoted or mentioned by any Chinese official shortly.
Do note that if the power play between China and the US continues, the coin that ultimately wins the preferential treatment could have a hard time getting regulatory approval in the US afterwards.
Disclaimer: I do not own any of these crypto coins.