Liangsong: If USD-pegged stablecoins become widely used, we should support domestically-issued yuan-pegged stablecoins
If stablecoins scale, fiat could become their collateral, and circulate less. That would limit central banks' role in payment settlements and monetary policies https://t.co/jBcY2rX0Vx
Its going to happen they will create what is called a stable currency called crypto yuan.
it will prevent capital flight and keep the money that is in china with in china rather then money out into overseas exchanges.
it will allow companies,individuals, investment funds and institutions to be able to invest into crypto currencies as same as like investing into shares.
China's main priority is protecting its own currency and protecting their citizens from being scammed thus the strict no ICO regulation, crypto yuan will be the answer as it will allow rmb conversion into crypto yuan and vice versa assume for a 1:1 ratio.
Catherine mentioned china is working on a solution where it will allow its citizens to invest.
Remember in order to use TKYs IDV solution it requires TKY tokens as payment,
My point is there will be a way and a solution to all of this and once the time comes where institutions and investors get in the price will explode.
Also note even if price goes to say $1 or $2 or sky rockets the cost of using the IDV service will will remain at a lower price
question though, lets say TKY boomed pegged to the Crypto Yuan, how will investors outside china be able to cash out if bitcoin will be prohibited to cash out into. Imagine that the exchanges ran out of it, potentially would be very difficult to cash out of outside China? or am i assuming too much? Would we suddenly have to cash out in Yuan? And if so, where would we be able to exchange the Yuan?
You will be able to cash out on any excuange that has tky paired ie kucoin and other ones later.. Hopefully binance. By crypto yuan it means there will be an exchanfe in china that allows citizens to deposit cny and then cny buy tky and sell vice versa.. And that cny stays in china as its on an chinese exchange
yes but lets say no one wants to buy it on the exchange or volume is super low, i want to cash out but the volume isnt there to cash out at any point? if its strapped to CNY it would possibly end up mainly in China, im sure they must at some point recall some or a large amount of the tokens to cope with their supply and demand. eventually in theory wouldn't all TKY end up in China?
Thats gonna be a hard one to guess but itll hopefully go on other exchanges soon with more liquidity. Will need to wait till mainnet for more info in the mean time.. But pay off will be masdive as we are talking about hundreds of million users