J. Kyle Bass, Founder of Hayman Capital Management, recently stated in an interview with The epoch times, that the Chinese digital yuan is a financial weapon which the Chinese government intends to use to achieve tremendous influence over its rival countries.
Bass believes that China’s communist government plans to utilize its new state-controlled digital yuan as a tool to spread authoritarianism throughout the world, which would be disastrous for the United States and should be prohibited.
The Chinese CBDC will have a mind of its own, he went on to say that the initiative will provide the Asian powerhouse a better economic position and more authority. He compared it to a “cancer” that would afflict the United State if it remains unbanned
I think that we should ban the [Chinese digital] currency and not allow any of it to be handled in the United States. I know that sounds hyperbolic, but if you just think all the way through this, you can’t have a little bit of cancer. You either have cancer, or you don’t have cancer
China’s central government is taking regional development objectives into account and speeding up its digital yuan tests. For example, the program recently started a lottery for Beijing to distribute 40 million digital yuan.
This is not the first time Bass is targeting China, in 2019 during an interview with CNN he stated that US may be headed for another recession and warned about the risks of investing in China.
Apart from Kyle Bass, the Chief Executive Officer of the cryptocurrency exchange Coinbase, Brian Armstrong, also expressed concerns that China’s digital yuan could pose as a big threat to U.S. dollar’s reserve currency status.
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