🇨🇳 China Challenges USD Dominance

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👋 Friends, Rallie here. The newsletter diving in with the latest in crypto, finance, and tech.

On the menu:

• 🇨🇳 China Challenges USD Dominance

• 🗞️ Headlines That Hit

• 📈 Refresh: Weak AI

• ✌️ Trivia Thursday

• 💯 Top Tweets

The Rallie Recap

📣 The US Dollar, the world’s reserve currency that’s used in the majority of world trade transactions, may be losing its steam. Today, we’re giving you a front-row seat on how China is taking on the USD:

• The competition. 🤑 China’s digital yuan/e-CNY, a central bank digital currency, is building its momentum.

• ₿ Used to compete with other digital currencies (ex: bitcoin and stablecoins) and reshape China’s current payment system, the hope for digital yuan is strong. 🪙

• 🏦 e-CNY is fully backed by China’s central bank, PBOC, and supposedly allows greater anonymity and better personal info protection with enough data to trace illegal activities.

• The integration with existing digital payment platforms has facilitated widespread adoption and simplifies transactions for individuals and businesses. 🤝

• Chinese citizens in the Hunan Province have generated $51.3M USD in paid taxes through digital yuan. 💰

• What’s so revolutionary? 🗝 It’s not just about digital yuan, it is also because of something called mBridge, technology that could shake the foundations of global finance through enabling evasion of sanctions and fragmenting financial systems. 😲

• How exactly? Through the use of digital currencies to sidestep traditional dollar-dependent channels for cross-border payments.

• 🎲 And predictions for the future are still brewing.

• ❗Critics are concerned and here are some of the reasons:

  • In combination with digital yuan and mBridge, the evasion of sanctions, taxes and anti-money laundering regulations could be on the horizon. 🥸

  • 🌍 Alternate payment systems could fragment the world’s financial landscape and push geopolitical tensions even further.

  • China’s involvement and ties to digital currencies like e-CNY could assert dominance within this field and generate a power shift in the international community. 💥

  • The nation’s move could cause other countries to accelerate efforts to develop their own central bank digital currencies, leading to fragmentation of the asset class.

  • However, there are privacy concerns… the centralized nature of digital yuan allows the Chinese government to have access to detailed transaction data and user info. 👣

• Is widespread adoption increasing? 💳 Minsheng Bank and JD.com’s recent partnership, both giants in their own right, have generated a booming interest with incentives and quick integration.

• However, some argue that e-CNY is still trying to find its place in the financial ecosystem… 🤨 conflicting views on domestic adoption and applications for the currency has roughed some experts’ optimism for its future.

• China’s digital currency is not the only one being buzzed about in the world… assets such as crypto’s legal and international moves are constantly pushing change. 🌊

• 🇺🇸 The U.S. government’s order. The Biden administration issued an order aimed to slow Beijing’s development of next-generation technologies that could have military and intelligence applications.

• Will limiting American investment in Chinese sectors involving advanced semiconductors, AI and quantum computing notably hinder China’s growth? 💻

• 🔭 How many will actually adopt digital yuan and mBridge with countless alternatives being either readily available or getting online everyday?

Headlines That Hit

• 👀 A hypocritical order? Zoom tells its employees to return to office… despite the company’s key purpose being to facilitate remote work.

• 🎥 Sold!? Experts debate whether or not Apple could be buying Disney in the foreseeable future.

• ⛽ The oil handoff. Canada’s government plans to sell a stake in the Trans Mountain oil pipeline to Indigenous groups.

• 🔎 A new challenge for crypto? The Federal Reserve is launching a new supervisory program that monitors bank actions with crypto, distributed ledger or blockchain tech, and tech-driven nonbank partnerships.

Rallie Refresh: Weak AI

If only robots could do this for me… Here’s where weak AI comes in:

🤖 What is weak AI?

• Weak AI aka narrow AI is a type of AI that is limited to a specific or narrow area.📍

• Unlike strong AI, this type of technology does not seek to become equal to human intelligence. 👤 It may be able to simulate human consciousness, but does not have it.

• 📁 Its potential lies in its ability to automate time-consuming tasks and data analysis in ways humans may not be able to replicate.

🤓 The details…

• 🗃️ A common application for weak AI is to turn bucketloads of data into usable information by detecting patterns and making predictions.

• But it can get controversial. Like with most tech, its potential to cause harm if a system fails or through user designs, are key issues with weak AI. ⛔

• 🤨 Additionally, automation through machines begs the question, will the benefits of innovation outweigh the jobs lost because of it?

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✌️Trivia Thursday✌️

📉 The answer for Tuesday’s newsletter (Canada is the world’s __ largest economy?) is 9th! Tune in next time for today’s answer.

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DISCLAIMER: This is not financial or legal advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.