Most of the financial world, regardless of which sector they are targeting are in full anticipation of the Chinese digital currency which is being developed as a direct counter to Facebook’s Libra which has the potential to be the most influential medium of exchange all over the world.
Despite the fact that most governments are unsure whether or not they should allow Libra to roam free, it may be their only salvation against the Chinese digital currency currently in development.
However, there is a serious anomaly in the market right now. As there is a democratic nation that could potentially benefit from the PBoC’s digital currency. That digital nation is Australia which is relatively close to Mainland China. In order to determine why the Chinese digital currency is such a blessing for the Australian government, we need to look at some backstory and the connection between these two countries.
The financial connection between Australia and Mainland China
Besides all of the FDI that is coming from Mainland China, Australia is a serious hub for laundering money. What I mean by this is that Mainland Chinese investors or wealthy individuals have a very hard time to truly take funds outside of the country without the government’s approval.
This is especially the case when it comes to “immoral” industries such as wagering, in which Australia is a leading country. In fact, there’s a specific law that prevents Mainlanders from taking out more than $3000 from the country for a specific trip outside of the borders. If there’s a business venture it needs to be noted as such so that the amount of funds that are clarified for “export” is increased.
Many would think that it’s easy for Mainlanders to simply go for a fake business trip somewhere,