China Prepping Digital Yuan

by | Feb 16, 2017 | Articles | 12 comments

by James Corbett
February 15, 2017

If you read these pages then you already know all about the war on cash that is being waged by central banks the world over. From Argentina to Zimbabwe and everywhere in between that dirty, rotten paper money (you know, that icky cash that people can use to exchange goods outside the purview of the government and other horrifying agorist ideas) has been under siege by governments and central banks.

In fact, you may have noticed that just in the past month the EU took another bold step in that direction with the European Commission announcing a new “roadmap” for “the fight against terrorism” that just happens to include “potential upper limits to cash payments.”

Heck, one of the keynote speeches at Davos this year was all about how the world needs to get rid of paper currency.

Perhaps sensing that its championship title for “most invasive nanny-state government” was on the line, the Chinese government has gone several steps further: Late last month China announced that the People’s Bank of China (PBOC) has successfully completed its digital currency trial run. China is ready to switch to a digital currency.

This is not a surprise to those who have been paying attention.

In 2014 the PBOC set up a special task force to investigate the possibility of issuing a sovereign digital currency. In 2015 they expanded that task force. In 2016 the PBOC convened a Digital Currency Symposium attended by “experts” from Citibank and Deloitte & Touche. They concluded that significant advancements in blockchain technology and other technical matters have made issuing a national digital currency possible for the first time.

According to China’s Caixin financial news service:

“According to sources from the PBOC, the central bank on Dec. 15 completed the trial in transactions and settlements of bank acceptance bills using a digital currency it developed, supported by blockchain technology – a secure digital ledger that records online transactions.

“The central bank’s digital acceptance exchange and currency system were put in place and connected for the test run with several commercial banks, including the Industrial and Commercial Bank of China, Bank of China and the private WeBank, the sources said.”

Their reasons for wanting to jump headfirst into a digital yuan? Why, to cut down on the cost of issuing paper currency, of course!…Oh, and there are a few other benefits, too, like “improv[ing] the convenience and transparency of economic transactions, reduc[ing] money laundering, tax evasion and other criminal acts, [and] enhanc[ing] the central bank’s control of over the money supply and currency circulation.” But mostly it’s about printing costs, honest!

Sarcasm aside, there is no great mystery as to why one of the world’s most controlling and oppressive governments wants to move to a purely digital currency. When the country is bleeding capital like there’s no tomorrow and spending unprecedented amounts of foreign exchange reserves to keep the currency propped up, all while trying to escape out from under the largest debt bubble in history, there’s quite an obvious benefit to having all money tracked, databased and controlled. With the flick of a switch, the PBOC will be able to control capital outflows, identify tax evaders, and punish anyone it doesn’t want transacting in society anymore.

And add this to the Chinese government’s nightmarish plan for a “social credit” system that assigns points for “good behavior” (and takes away points for “bad behavior”) and the future looks positively…well, Orwellian (there’s that word again).

Not to worry, the plan is to have both paper currency and digital currency in circulation….at first. One can imagine the paper currency being phased out as quickly as the public can be made to accept it, though.

And the rest of the world is not that far behind. They are going to be watching the PBOC’s grand experiment very carefully to see how the populace goes along with it, or what kind of resistance is offered. But one way or another, it looks like the “war on cash” is winding down for 1/7th of the world’s population, and the wrong side is winning. The rest of the world may not be far behind.

There’s still time to flip the script (or at least form your pocket of resistance), but the clock is definitely ticking.


  1. Next step: illegalize private gold and other precious metal holdings. Then do the same with all so called private property. The end.

    If I had any common sense, I’d start mass hoarding pitchforks and torches, I’m betting someone will make a killing with those. Pardon the pun.

  2. Forwarthinking guy,

    You know Trump actually asked Russia to hack Hillary’s server(s) during the elections, and that the intel agencies did conclude Russia helped Trump get elected.

    • Feb 16, 2017 -NEWS- Trump goes after media in Press Conference
      Trump talks about the “Russian Ruse”.

      All this Russia rumor talk probably originates from the Neo-neocons, especially Kagan and friends.
      Corbett Report video –
      Show notes –

      Some great links on the New Neocons regarding Russia here with Robbie Martin. (Less than 15 minutes)

      • Not saying there isn’t a concerted effort by the US intel agencies to demonize Putin and Russia, probably because Russia’s foreign policy conflict with NATO’s, that said, Trump didn’t exactly help himself when he asked Russia (a foreign state) during the election campaign to hack Hillary’s email in order to help him win the election!!! That is the definition of treason.

        • Peace.froggs, Source?
          I would like to see a valid reference that Trump asked Russia (a foreign state) during the election campaign to hack Hillary’s email in order to help him win the election!!!
          I know there were rumors and unsubstantiated claims and Fake News articles to that effect, but I have never seen a verified source. I have only seen propaganda.

          • Further, how does one ask a COUNTRY to do something? One can’t go and ask Russia or China or Uzbekistan to do anything. People with names and surnames need to be involved.

            • Forwarthinking guy, ever hear of “reverse engineering” a product or technology? Well, the same can be applied here regarding how the US intel agencies figured it was Russia that hacked.

              Of course the intelligence community isn’t going to give the general public “concrete evidence” that will expose how they collected that info in the first place, given anybody could then use this info to “reverse engineer” in order to spy themselves or create firewalls, or be sued for breaching the Constitutional rights of citizens.

              So how can we 100% trust what they tell us without providing any proof? Well, we can’t, and we shouldn’t, however the US has the gang of eight so they too are briefed on classified intelligence matters, not just the President and his lackeys, to account for some form of check and balance.

              Let me ask you this Forwarthinking guy,…you honestly believe Putin and Russia preferred Hillary as POTUS than Trump? I don’t think so.

              Secondly, you watched the video in which Trump asks Russia to hack Hillary’s emails, and heard it from his own mouth.

              Furthermore, you actually believe Putin has America’s best interest at heart? Or do you think he’s looking out for Russia’s best interests?

              For me, it doesn’t matter if Russia hacked or not, what is troubling is that a sitting President is openly feuding with his own intelligent agencies 4 weeks in his Presidency, all the while praising a hostile foreign leader that may have hacked his political opponent in order to sway the election.

            • herrqlys,

              You interpret Trump’s comment as “tongue-in-cheek”…I don’t, I believe he was absolutely serious.

              Don’t forget 9/11 Guiliani, you know the guy that predicted that Tower 7 was going to collapse, well he was also Trump’s top advisor during Trump’s Presidential campaign, and it was probably Guiliani that put pressure on FBI director James Comey to announce just 2 weeks prior to election day, that the FBI was reopening its probe into Hillary Clinton’s use of a private email server.

              Your guy Trump has surrounded himself with Wall Street lackeys, 9/11 co-conspirators and you think I’m the victim of FAKE News propaganda!??? Oh brother.

        • I’d like to see this notion of “Russia’s foreign policy conflict with NATO’s” elaborated.

          Blame game: NATO expanded to Russia, or Russia moved towards NATO?

          To draw an obvious parallel, suppose Soviet union was restored and Mexico became a part of it after which Soviets place hundreds of military bases on the ex Mexico – US border. Would that mean US is being aggressive towards the Soviet union?

  3. Solutions! Should be mandatory part of all USA (fake) news products.However,imagine the paradox of editorial boards directives being countered by opposing and conflicting editorial boards members solutions . Mayhem would ensue, people would be hurt, competing news outlets would create their own news outlets and compete.Cheat,lie,steal,do any thing to win over the competition. Than who would regulate all this confusion and chaos. Wait , I think I have just described the present state we are in right now. Solution, fire them all and seek alternative sources for “the news” and let solutions be offered up from the people. Oh god I’m stuck in the old parodox problem/solution/action/problem/solution/action make it stop.

Submit a Comment


Become a Corbett Report member