This review essay may contain some errors about the objective truth. Also, this review essay is completely written by myself. Therefore might have a biased opinion. Please tell me if this essay includes some errors about the objective truth. Also, I like to hear your idea about my opinion. Please leave them in the comment. I never take responsibility for the content of this essay. Every choice is up to you. So please be cautious when reading it.
There are two main topics in this video.
The first one is the digital currency will beat paper money or in contrast, paper money will stifle digital money. And the other topic was China's Yuan can bean the U.S.A's dollar or not. I was trying to focus on one of those two but later I changed my mind to deal with both.
First, I'll just summarize the video and then add my opinion on them.
In the video, there are many opinions and reasons to support the opinion about the CBDC which stands for Central Bank Digital Currency. Many of them were concern about the function. How will it be distributed, how does the government deal with the offline sector, and how people can take care of the privacy problem? But also, there seem to be many advantages of digital currency. Such as sustainability, speed, convenience, access to money, no conversion fee, and others.
About the first issue, does paper money can stifle digital currency or not. In my opinion, it will not. The government always wanted to control its currency to increase its power. From ancient countries like Rome until now. CBDC is quite a perfect form of money for the government and overwhelms most of the good points of paper money. Even though there are some problems according to the video, about seven million people don't have a bank account, and many Hispanics and Blacks don't use banks well. It is not a big issue. There are many ways to solve that problem like a virtual account or temporary account. After the control of the government become strong, many problems like the black money problem can be eased since the central bank can control most of the money transparently.
About the cryptocurrencies like Bitcoin, it is quite hard to become one of the systems that the government had made since the government doesn't want to lose its power of control. Therefore, I suppose that cryptocurrency can be a part of speculation but not a formal system.
The second perspective of the video was does Chinese Yuan can beat the U.S.A dollar or the U.S.A dollar will just stifle the Chinese digital Yuan. First of all, I insist that the CBDC will become the dominant form of money in the former paragraph. Therefore, the Chinese digital Yuan might grasp the chance of raising their currency power over the world and the U.S.A dollar. However, I think that the power of the currency is from the economy and the power of the country that controls and guarantees the value of the currency. In the video, about 62% of the world uses the U.S.A dollar. And the Chinese Yuan is not even close to that ratio. Also, the transparency of the Chinese government and the society is dim compare to the U.S.A because of the authority of the judicial system. Overall, the Chinese Yuan can not gain the trust and power of the dominant currency due to those reasons, power and trust originated from the transparency of the society.
Even though digital currency has many advantages towards paper money, I don't think the Chinese Yuan can beat the U.S.A dollar even though it has become a digitized form.
In conclusion, I think the digital form will be the dominant form of the currency in one day since it has a lot of advantages for the government. However, I don't think the Chinese digital Yuan can pass over the U.S.A dollar even though it has become digitized.
Thanks.
구조적인 측면으로 매끄럽게 전개해 주셔서 얹을 말이 없는 거 같아 문장 관련해서 적었는데, 제 개인적인 의견이니 어색한 부분이 있을 수 있습니다.
ReplyDelete첫 문단에서 I intended to focus on one of those~ 가 조금 더 자연스럽게 읽힐 수 있을 것 같고, 첫 번째 주제에 대해 말씀하실 때 It is not a big issue 가 어떤 내용인지 잘 와닿지 않아서 풀어주시면 이해하는 데 도움이 될 것 같습니다.
주장이 확연하게 드러나서 흥미롭게 읽었습니다. 좋은 주제 공유 감사합니다!