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Archive for 8. Dezember 2019

Brace for the Digital‑Money Wars

Posted by hkarner - 8. Dezember 2019

Date: 08‑12‑2019

Source: The Wall Street Journal

Digitizing the Chinese yuan—and eventually the dollar—would open new fronts in the fight over privacy and trade.

THE NOT‑TOO‑DISTANT FUTURE—The National Security Council holds an emergency meeting. North Korea has launched a missile, capable of carrying a nuclear warhead within range of U.S. forces in Guam. At this rate, North Korea could land a nuke on the U.S. mainland in less than a year.

The shocking advance in capability despite heavy trade sanctions is due to a stream of money that the U.S. and its allies cannot monitor—a cryptocurrency. But it’s not one of the risky ones celebrated by overnight millionaires and largely avoided by serious investors, it’s a new one, with the stamp of legitimacy: the digital yuan.

The scenario above is fiction, but it isn’t fantasy. If China digitizes its currency, as it plans to do, and the North Koreans use it to finance their missile program, it’s a flow of money that circumvents U.S. sanctions. That would force the U.S. to grapple with its own now‑antiquated currency. If the U.S. follows suit, digitizing the dollar in order to maintain its global economic dominance, it would also find itself in possession of a potentially powerful surveillance tool. Den Rest des Beitrags lesen »

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