Matthew Graham, a China banking investment veteran and CEO of Sino Global Capital headquartered in China, has analyzed what is so far known about the expected Chinese cryptocurrency. He thinks that the Chinese government sees the technology as something that can actually break the dollar dominance in the financial world.
Matthew Graham: This is a great opportunity for China
When addressing the founder of Boxmining at the Unitize conference on June, 6th, Graham said that it's really difficult for China to internationalize the yuan at this point. Still, the hi tech may help China implement this ambitious goal:
In particular, he said that Swift, CHIPS, Fedwire are outdated, expensive, and slow. It's 2020, and still, we can see some transation last for 3 day, not to mention the expenses. Basically, all of those technologies oriented to the U.S. Dollar cannot conceal their age, which is a great opportunity for China, he says.
He also said that if you approach the digital yuan from the standpoint of cryptocurrency or blockchain, then it's hard to say what it is and why it is so important. According to him, the new technologies integrated into the digital yuan including the blockchain-based aspects, are used for other purposes. Basically, the digital yuan many be used to collect data in real time associated with money emission, accounting, etc.m while providing valuable information.
Graham also thinks that the digital yuan may also be helpful when it comes to introducing negative interest rates. On top of that, this opens a whole lot of opportunities for artificial intelligence and machine learning, especially when detecting financial scams. He thinks that this should be compared to such systems as Fedwire, CHIPS, SWIFT. Basically, this is all about making the Renminbi international, at least to some extent.
