Max Keiser and Stacy Herbert look at the race to issue the first successful ‘central bank digital currency,’ with China currently at the front of the pack with a free money airdrop starting this week.
The Chinese currency is not a threat to bitcoin because it’s a highly-centralized coin, it’s a digital currency, says Max. Nevertheless, it does give Beijing a leg up in the race to have a debasement of their currency, he points out.
What all this means to global markets is that “the governments are getting ready to allow banks to fail,” Max says. He explains that, according to crypto-expert Simon Dixon’s theory, if your account is full of digital currencies that are backed by the government then, if the bank fails, the deposits are guaranteed because they are in the wallet. “So, this could be a major contentious moment between banks and governments,” Max concludes.