Kyle Bass, an American billionaire and founder of Hayman Capital Management, has warned the US that the China’s CBDC might be harmful to the country.
He said that China’s communist government plans to utilize the digital Yuan (China’s CBDC) to spread tyranny across the world. Kyle cautioned that China’s activities would harm the United States and urged the US government to prohibit using the digital yuan if it became a reality.
The China’s CBDC would be a threat to US capitalism.
First, the billionaire called the yet-to-be-launched China’s CBDC an oppressive instrument, claiming that China will use it to acquire tremendous influence over competitor countries. According to Kyle, the digital yuan will provide the Asian powerhouse a more economically solid position and more control.
He went on to say that it is cancer that would afflict the United States if it is not banned.
“I think that we should ban the (Chinese digital) currency and not allow any of it to be handled in the United States. I know that sounds hyperbolic, but if you just think through this, you can’t have a little bit of cancer. You either have cancer, or you don’t have cancer.”
Kyle claims that the China’s CBDC matches the characteristics of a communist dictatorship, even though the United States is a capitalist country.
China continues to lead the CBDC race.
The Asian nation continues to be the front-runner in the worldwide CBDC race. China began testing the currency in January by distributing $4.6 million in the form of the CBDC to citizens in Sichuan. The goal of the program was to see how effective the digital yuan was.
They have continued to distribute the digital money to Chinese residents in order to ensure that when it is ultimately released, there will be no technological or economic difficulties running the digital currency.