Chinas Embrace of Blockchain Is Warning Shot to West

But its effect on cryptocurrencies, the yuans global adoption, Facebooks Libra project, and Western banking hegemony cant be understated.

Chinas strong endorsement of a blockchain-based central bank currency and the Wests relative aversion to the technology opens an interesting new front in the growing U.S.China technology rivalry.

Developments in fintech, payments, and blockchain digital currencies are receiving support from the highest levels of the Chinese central government.

Max Keiser, the host of the Keiser Report, a financial news show on the Russian state network channel RT, recently suggested that Chinas digital currency has even greater ambitions.

Any cryptocurrency market reaction to recent developments should be neutral to negative, as Chinas state-controlled digital currency could become a legitimate competitor to existing cryptocurrencies.

Cryptocurrencies key benefits are hugely negative for the CCP: They cant be centrally controlled and users must sell fiat currency to purchase digital currencies.

Its a digital currency that it can control, the government can track where its going, and its a domestically developed technology that doesnt rely on foreign entities.

During Zuckerbergs testimony, he appeared to hedge his bet, conceding that Facebook and himself are perhaps not the ideal messenger given the circumstances.