The head of US National Intelligence, John Ratcliffe, believes that the digital yuan from the People’s Bank of China (PBOC) can become a threat to the country’s security, “undermining” the status of the US dollar.
Last month, John Ratcliffe sent a letter to the chairman of the U.S. Securities and Exchange Commission (SEC) To Jay Clayton, informing him of their concerns and security concerns that may arise in the country due to China’s dominant position in the mining industry and in the cryptocurrency industry in general.
Ratcliffe called on the agency to develop rules that would allow American firms working with blockchain and digital currencies to remain competitive. It is necessary to clarify the regulation of crypto assets in order to avoid the risk of a threat to the state and economic security of the country.
America has the privileged status of the issuer of the world’s reserve currency-the US dollar, and all international trade is carried out in dollars. Thanks to the special status of the US dollar, the US Federal Reserve (Fed) can print additional money without fear of hyperinflation, as the US currency has a huge demand around the world.
Taking advantage of the situation, the United States considers economic sanctions as an instrument of international influence. Ratcliffe is concerned that with the successful deployment and large-scale adoption of the digital yuan, this stablecoin could challenge the dollar in international trade.
Recently, the former head of the NBK Zhou Xiaochuan (Zhou Xiaochuan) said that the digital yuan is aimed at developing retail payments in China to prevent the dollarization of the economy.
Last month, authorities in the Chinese city of Shenzhen distributed 10 million digital yuan to 50,000 residents. These funds were used by Chinese citizens to pay for goods and services. In addition, the leadership of the Chinese central bank announced that it is preparing to test a hardware wallet for the digital yuan.