Thread by @CurrencyWar1

China Will Disrupt Crypto (2) $ETH Killer
-> PBOC proposes to monitor metaverse and NFTs cointelegraph.com/news/china-s-c…

Crypto underestimates the vision of China's Digital Currency Ambition.
Its about inserting a digital RMB into the global reserve currency complex while upending

https://twitter.com/CurrencyWar1/status/1464332246584856576

Dollar hegemony and supreamacy. The vision will allow China open its Capital A/c and fund the massive deficits accrued by semi state enterprises. I forsee the Yuan as a stable coin, leading to a collapse in FX volatility and a genuine use case for RMB mass adoption via its

customer wallet and digital currency as a vehicle for day to day transactions in the global payment system. Recent movement to emphasize stakeholders over shareholders in Chinese FinTech suggests that the tool that China used to play catch up with the west post joining WTO will

be used to propel the RMB forward, with this technology stack sitting on top of the digital RMB. This plan see's BTC as a threat to RMB 'sovereignty' a key factor behind China's determination to adopt a digital currency in the first space, given the worrying outfows ( China lost

1.0 Trio dollars of FX reserves ) in the period 2014/2017 which the chinese authorities attribute to the ''popularity of bitcoin" at the time.
So now we have a digital reserve contender, in a world where Global CB reserves are predominantly ( 60%) weighted in Dollar's,

excessively easy Monetary and Fiscal Policy, while China is working to create mass adoption of its currency by inserting in the global payment system ( the 1st sign of facebook project Libra's failure, was China luring paypal away from the libra project and giving themaccess

to CIPS ( China international payment system ).
With a currency that has appreciated by 10% on a basket basis since covid began in Dec2019 despite trade wars, covid and two US presendencies hostile to China, its clear to me, that another strategy to enhance the Digital RMB's

attractiveness is to place its technology stack ( now doing the work of the people ) on top of the Digital RMB to drive the currency forward.
So as DCEP launch appears on the horizon, my view is that China will have created a digital alternative to the dollar, which will be a

stablecoin. Using China's huge consumer tech wallet, a case for mass use in the global payment system will, through the speed that a digital payment currency offers, backed up by huge user engagement a force to threaten not just the dollar, where many US policy makers do not

see a user case for a digital currency but in placing its socialised fintech to sit as a stack in its currency creating end user demand via the infrastrucure being put in place by western firms to capture the opportunities China as a market offers in both Equities and Bonds.

Now the Chinese see the proposition offered by the Metaverse and NFT's and again typical with the puritanism expressed by many participants, the digital asset space, they underestimate the proposition and threat for crypto assets (#Defi) proposed by Chinas policy stance. This is

negative for #ETH and consistent with my view that DCEP launch will be negative for all major Crypto assets over coming months.

DCEP - A Digital App Store For RMB Fintech

https://twitter.com/CurrencyWar1/status/1464321002532388870?s=20

remember I was bullish $ETH in agust 2020

https://twitter.com/CurrencyWar1/status/1294367886497071104?s=20