RIO DE JANEIRO, BRAZIL – By 2014 at the latest, China aims to establish the digital currency “E-Yuan” as a trading currency. In the slipstream of the current global crises – first Corona, then the new “Cold War” between Russia and NATO – the People’s Republic is once again pushing ahead with corresponding developments.
The primary goal is to become more independent of the dollar. However, the new currency also represents a first step toward the complete abolition of paper money in China. Experts have also long warned that China is also exerting massive pressure on its neighboring countries to no longer transact their trade in dollars, but in e-yuan, and thus end the dollar-fixation of the foreign exchange markets.
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In addition to this goal of driving down demand for the dollar even more, he said, the e-currency should be anchored in international trade through, among other things, China’s “One Belt, One Road” global infrastructure strategy, made famous by the “New Silk Road” project. China is also pushing regional currency coalitions such as the East Asia Digital Currency.
(Learn more about China’s social credit system)
GLOBAL MODEL
The already massive push (along with Russia) to move away from the dollar is certainly gaining significant momentum as a result of the Ukraine war and the subsequent Russia ‘canceling’ by the West.
This, combined with the first attempt by a leading economic and major power to digitize its monetary transactions, represents a milestone in the total financial control of citizens, which in China fits seamlessly into already existing totalitarian structures but is likely to become a global model in the medium to long term.
The key here is state primacy over digital currency. Bitcoins and other cryptocurrencies, for example, are strictly forbidden in China’s one-party regime – because they do not allow any control by the government.
In contrast, the state can use the e-yuan to monitor and control all of its citizens’ transactions. While this makes tax evasion, fraud, or the financing of fraudulent transactions virtually impossible, it also ensures the further tightening of the Chinese government’s totalitarian stranglehold on its own citizens.
Individual consumer behavior can be tracked just as meticulously as individual citizens can be excluded from economic life. In the future, opposition or “socially harmful elements” could have their accounts cut off at any time.
GREAT RESET AND GLOBAL GOVERNANCE
Arbitrary rewards or sanctions have long since assumed unprecedented proportions in the Middle Kingdom thanks to the social credit system – and are increasingly arousing the interest of Western thinkers who dream of a Great Reset and global governance (see here or here).
The first major hurdle for the e-yuan was this year’s Winter Olympics in Beijing, where the new currency would also be used by foreign athletes. A group of Republican U.S. senators had written to the U.S. Olympic Committee in advance protesting this, pointing out the true purpose of the e-yuan.
“Olympic athletes should be aware that the digital yuan will be used to monitor Chinese citizens and visitors to China on an unprecedented scale.”
ABOLITION OF CASH SETS PRECEDENT
So China could once again prove to be a pioneer – not only in terms of perfecting a totalitarian surveillance apparatus but also in terms of abolishing cash. The idea also has many supporters in Europe: Last July, the European Central Bank launched the two-year pilot project of a digital euro.
Under the guise of allegedly “fighting crime,” the EU also wants to introduce a limit of 10,000 euros for cash payments. The switch to digital currencies would result in a massive loss of freedom because every transaction leaves traces that can be traced.
Insurance companies or employers would then have access to all consumer data and would know everything about “unhealthy” eating or sleeping habits etc. It would also ensure the independence of financial institutions.
Hans-Jürgen Papier, the ex-president of the German Constitutional Court, has already warned that abolishing cash would be “an unjustified encroachment on the right to freedom.”
NOT CHINA IS BECOMING WESTERN, BUT THE WEST IS BECOMING CHINESE
The hope that China could thus orient itself more toward the West in the long term, as preformulated in the doctrine of “change through trade,” has thus finally failed.
Conversely, it is more likely that China, with its authoritarian understanding of the state and its citizens, will increasingly be used as a model for post-democratic structures in the course of the trend toward globalization.
The highly efficient decision-making processes and social mechanisms there, which are diametrically opposed to any notion of fundamental rights and freedom, are increasingly popular, especially among Western leftists, either clandestinely or outright.