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China May Launch A Digital Gold-Backed Currency Soon

There are ongoing rumors that China is set to launch a gold-backed virtual asset. The rumor mills also reveal that the south Asian country has scheduled next year’s winter Olympics for the launch.

Max Keiser Believes Rumor Is True

Famous bitcoin enthusiast, Max Keiser, retweeted a post that discussed this rumor at length. Thus, showing his stance regarding the talks. He bolstered his view by tweeting a claim he made in 2019 during the Daniela Carbone show, where he revealed that China would soon launch a gold-supported digital asset.

Max Keiser Tweet. Source: Twitter

A popular Asian news outlet speculated that the image used in the video ad for the digital Renminbi introduction depicted gold filling the digital coin. Hence, it suggested that it is likely that China will launch a gold-supported virtual asset.

Some economic analysts opined that if this rumor eventually becomes a reality, it will cause a decline in the value of the US dollar. Thus, China’s gold-backed monetary policies will make the country a de-facto economic leader.

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No More Decentralized Platforms

If China launched a gold-supported cryptocurrency, then its citizens would not need to engage in cryptocurrency activities. Also, there won’t be any need for aggressive actions on crypto-related operators and traders. Last week, China’s apex bank called digital assets a bubble with no value. It further affirmed that the country would never legalize any cryptocurrency, including bitcoin.

It also called it a hype warning its citizens to desist from it because it is highly risky and won’t make them financially secure. A top executive of China’s central bank further stated that “we want to reiterate for the populace that digital currencies have no value and aren’t legally adopted.”

The executive further affirmed that the authorities aren’t relenting on their crypto clampdown efforts. China’s apex bank plans to create a standard working infrastructure for a decentralized financial system. The top executive also said people shouldn’t mind reporting events of any illicit fund-raising activities.

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Cuba Legally Adopts Digital Currencies  

While China is clamping down on cryptocurrencies, other countries are embracing them. Following El Salvador’s legal bitcoin adoption, several countries inside and outside central America have attempted to follow suit. Cuba is the latest country to adopt cryptocurrency legally despite being plagued by high poverty rates and low agricultural/industrial production.

Per the announcement, Cuba’s apex bank disclosed that there would be specific rules before crypto service providers can be provided with operating licenses. There has been a sharp rise in the popularity of digital currency trading in the Caribbean, especially among the youths, as they have the most profound knowledge of how blockchain and cryptocurrencies work. Stiffer trade policies by the American government, especially during trump’s regime, and the reduction in remittances from abroad-based Cubans to the country were other reasons for the rising interest in cryptocurrency.

Before now, Cubans have had to conduct crypto-related transactions illegally and without being caught by government authorities. However, this new policy allows almost anyone to conduct crypto transactions, especially with using gift cards.

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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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