Open AccessDigital currencies: Challenges between the United States, the European Union and Asia Pacific
Author(s) -
Rosa María Ricoy-Casas
Publication year - 2022
Publication title -
cuadernos europeos de deusto
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.111
H-Index - 2
eISSN - 2445-3587
pISSN - 1130-8354
DOI - 10.18543/ced-03-2022pp95-114
Subject(s) - cryptocurrency , virtual currency , payment , china , currency , business , state (computer science) , international trade , order (exchange) , european union , cash , sovereignty , commerce , financial system , international economics , economics , finance , political science , monetary economics , computer security , algorithm , politics , computer science , law
In June 2019, Facebook announced its own cryptocurrency “Libra” to be used through WhatsApp and Messenger, in order for its value to remain stable thanks to the support from banks and electronic commerce companies, linking to different currencies and the support of important companies. EU antitrust regulators investigated it as a “threat to monetary sovereignty”. China is already testing its own DCEP cryptocurrency tied to state banks and major companies, with notable advantages. It will probably displace cash and be used even for world trade, which can make it an alternative to the traditional international payment system, compared to the current one led by the United States with the USD. The Belt and Road Initiative (BRI) offers “the area and the route” to extend the Yen as a global digital currency. These new developments, and their rapid and high competitiveness produced as the “art of bian lian”, have generated intense concerns in the international financial system. Will the EU, Japan or the US be able to counter the virtual yuan so quickly?
Received: 01 September 2021Accepted: 05 November 2021