The American billionare hedge fund manager raised a note of caution that the Chinese Government plans to use its new state-controlled digital yuan (CDBC) as an instrument to become a global leader financially. He opined that it would have a devastating impact on the US, and that they should ban it.

In a recent interview, Bass argued that the Chinese digital yuan is a financial tool, which the government intends to employ to gain massive influence over its rival countries. He added that the project would grant a stronger economic position and more financial control to the Asian economic giant.

Bass, who is the founder and CIO of Hayman Capital Management, warned that the Chinese digital currency could cause significant financial damage to the US, if unbanned. He argued:

“I think that we should ban the [Chinese digital] currency and not allow any of it to be handled in the United States. I know that sounds hyperbolic, but if you just think all the way through this, you can’t have a little bit of cancer. You either have cancer, or you don’t have cancer.”

The Chinese government could require companies to adopt the central bank digital currency if they want to invest in the country. Moreover, nations part of China’s Belt and Road initiative (BRI, previously known as One Belt, One Road) could be seduced to employ the digital yuan.

The Chinese Government does not hide its ambitions to be the first major government to launch a central bank digital currency.

For example, at the beginning of 2021, the authorities of the Asian country supplied the residents of Chengdu – the capital of the province of Sichuan – with $4.6 million in the form of the CBDC. The initiative aimed to test the efficiency of the digital yuan.

Last month, the Chinese authorities distributed even a larger amount, but this time to the citizens of Beijing. The residents of the capital received $6.2 million of the digital yuan.

In addition, officials of the Chinese Government plan to expand the scope of its pilot by allowing athletes and foreign visitors at the 2022 Beijing Winter Olympics to use the digital currency:

“For the upcoming Beijing Winter Olympics, we were trying to make e-CNY available not only to domestic users but also to international athletes and like visitors.”

Source: Billionaire Kyle Bass: China’s Digital Yuan Should Be Banned in the U.S. – Fintechs.fi