Red and Gold, not Red and Yellow.
China is leading the race for the first central bank-backed digital currency. However, the term “backed,” might not be what most people expect.
The People’s Bank of China [PBoC], the country’s Central Bank shocked the world when it revealed in August that it has been working on a digital version of the yuan for years. Reports emerged of banking partnerships with the Bank of China, the Agricultural Bank of China, the Industrial and Commercial Bank of China and even technology companies like Alibaba and Tencent on the books to support the sovereign digital currency, further spooking western competitors, but that not be the scariest thing about the digital yuan yet.
Unlike Facebook’s Libra which will be backed by fiat currencies and short-term government deposits and the US dollar which is merely backed by the American government, China’s digital yuan will be backed by something more real.
According to Max Keiser, outspoken Bitcoin evangelist and host of the Keiser Report on RT, China’s digital currency will be backed by none other than the sparking opposer to Bitcoin, the tangible and traditional version of the cryptocurrency. In an interview with Kitco News, Keiser stated that the China CBDC will be backed by gold.
In his words,
“I can tell you that the cryptocurrency China is rolling out will be backed by gold.”
This announcement by Beijing will be two-pronged. First, China will reveal to the world that they have about 20,000 tonnes of gold, and not 2,000 tonnes that was reported earlier, and this will be the “final nail into the US dollar.” He added that this is China’s “big move for the 21st century,” in light of US curbing China’s trade.