A 2-Currency World: A World Of Disorder | Seeking Alpha



A 2-Currency World: A World Of Disorder

Mar. 31, 2022 1:13 PM ET

John Mason


  • What if China builds, with its e-CYN, a global presence with a lot of trading partners in the world of digital currencies?
  • What if currency markets bifurcated into overlapping systems, one using the dollar and one using the e-CYN?
  • How would this change in the market work out? Would it just be a world of disorder as China and the United States competed against one another?
  • Be aware because some people see such a world evolving.

China has got something else going on, something that the Russian invasion of Ukraine is distracting the rest of the world from its development.

China is generating a revolution in the world of information and the growth and spread of information.

Martin Wolf calls attention to China’s progress in the Financial Times.

Furthermore, two major studies were released at the start of March 2022 by the Hoover Institute at Stanford University.

These two studies are right at the edge of what is going on in the world and I highly recommend them to anyone that is interested in the world of information theory and the innovation in the world of finance and economics.

That is, these two studies are about as up-to-date as far as what is going on in this new era of information and what major thinkers are considering when looking at this global transition to the next stage of world advancement.

The first study is titled “China’s Digital Ambitions: A Global Strategy To Supplant The Liberal Order.”

The second study is titled “Digital Currencies: The US, China, And The World At A Crossroads.

Basically, what these publications examine is the move by China to dominate the digital world by creating a monopoly in the collection of data, information, and then using this collection of information to “out-create” the rest of the world. and dominate it.

Leading the world in the advancement of digital currencies will provide China with the means of dominating payments.

Both would also give China information to “control the world.”

This world is what China sees for the future.

China’s new creation, the eCYN, is just such a digital currency. China has banned cryptocurrencies in China.

But, Mr. Wolf, in his Financial Times article, argues that China has very little chance of bringing the eCYN to the point where it comes to dominate the U.S. dollar in global finance.

On the other hand, China has a very good chance of bringing the eCYN into dominance in the trading that takes place between China and China’s many trading partners.

China has developed the Cross-Border Interbank Payment System (Cips). This is a system that is an alternative to the Swift payment system, the cooperative society providing services related to the execution of financial transactions and payments between banks worldwide, and is dominated by dollar transactions.

The fear is that China could develop “a walled garden” for its currency by those closest to it.

The result: the existence of two monetary systems with still the need to interact.

So, Mr. Wolf states, there would be two payment systems operating “in different ways” and “overlapping uncomfortably.”

In essence, Mr. Wolf concludes, this would result in “a new global order built around China.”

Does this picture change the world for you? Could a global system with just two payments exist at some point?

John M. Mason

Banks, Long-Term Horizon

Member Since 2008

John M. Mason writes on current monetary and financial events. He is the founder and CEO of New Finance, LLC. Dr. Mason has been President and CEO of two publicly traded financial institutions and the executive vice president and CFO of a third. He has also served as a special assistant to the secretary of the Department of Housing and Urban Development in Washington, D. C. and as a senior economist within the Federal Reserve System. He formerly was on the faculty of the Finance Department, Wharton School, the University of Pennsylvania and was a professor at Penn State University and taught in both the Management Division and the Engineering Division. Dr. Mason has served on the boards of venture capital funds and other private equity funds. He has worked with young entrepreneurs, especially within the urban environment, starting or running companies primarily connected with Information Technology.



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