Following Facebook’s recent Libra whitepaper release, the Chinese central bank accelerated its plans to launch its own digital currency. The race to CBDC is on. Who will be the first to float one? China? Facebook? The US government? The excellent Binance Research report sheds some light on the matter exploring existing discussions related to the creation of a sovereign digital currency from the People’s Bank of China, along with its potential structure from operational, financial, and technical perspectives.
THE REVOLT AGAINST THE DOLLAR AND THE RISE OF A NEW FINANCIAL WORLD ORDER
The dollar's status as the world's preeminent currency, together with the U.S. military, has underlain American power since World War II. In a sweeping review of one of the most seminal yet least noticed developments in international affairs, Gal Luft and Anne Korin describe how an emerging coalition of revisionist countries, rogue governments, techno-visionaries and sanctioned entities, buttressed by innovations like blockchain and 5G, are working to push the dollar off of its reserve currency throne. It would not be the first time. Preceding the dollar, five consecutive currencies, each belonging to a superpower of the time, ruled the markets. Each predominated for roughly 80-100 years, and as it tumbled to irrelevance it accelerated the decline of the empire behind it. Are we due for a rerun?