Communist Party of China Decodes Crypto’s Financial Revolution

Airdrop Is Live

CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com

This move has sparked global buzz about digital currencies. These assets, rooted in cryptography and decentralized ledgers, boast traceability and tamper-proof features.

They’re shaking up transactions and value storage, potentially rewriting the international financial playbook with “Crypto’s Financial Revolution.”

China Defines Three Types of Digital Currencies

China’s communist party said that there are three flavors of digital currencies:

Cryptocurrencies like Bitcoin:
Stablecoins like USDT and USDC.
Central bank digital currencies (CBDCs) like China’s e-CNY.

They also said that Bitcoin, born from complex algorithms and “mining,” caps at 21 million coins—19.8 million already circulate, leaving just a sliver to unearth. Its decentralized nature sidesteps national credit, mimicking gold’s inflation resistance, but its wild price swings (peaking above $100,000, now ~$86,000 in March 2025) make it a rollercoaster ride.

Media under the Communist Party of China stated that once the US dollar stablecoin links the international credit of the US dollar more closely with the application scenarios in the virtual world, the US dollar stablecoin may greatly consolidate the US dollar hegemony, and called…

— Wu Blockchain (@WuBlockchain) March 21, 2025

Stablecoins, pegged to assets like the U.S. dollar, hold steady—USDT and USDC dominate 90% of the market. CBDCs, backed by sovereign credit, offer stability but hinge on a nation’s currency reputation.

Stablecoins Strengthen the Dollar’s Grip

According to a letter from China’s communist party, Bitcoin’s no true currency—it’s a quirky asset. Its price volatility kills its shot as a stable measure or transaction tool, and its fixed supply can’t flex with economic growth. Risky? Sure. Safe-haven? Maybe—it often dances opposite the dollar’s tune. Stablecoins, though, are the real game-changer. Tied to the dollar, they’re storming crypto trades, DeFi liquidity, and even replacing shaky local currencies in developing nations. With a $180 billion market by late 2024, they’re cementing the dollar’s global grip—talk about the tail wagging the dog.

CBDCs mirror sovereign cash in digital form. China’s e-CNY, tied to the yuan, shines in retail but lags in broader use, stuck replacing just cash (M0). Its reach is handcuffed, unlike the dollar’s stablecoin muscle. China’s media suggests a three-pronged counter: expand e-CNY to M1/M2 for wider use, launch yuan-backed stablecoins via tech platforms, and push the IMF’s digital SDR—a currency basket challenging dollar dominance.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

The post Communist Party of China Decodes Crypto’s Financial Revolution appeared first on Altcoin Buzz.

Source link