By Larry Wright
Kyle Bass is an American investor and hedge fund manager. He is known for founding Hayman Capital Management and serves as its Chief Investment officer today. In a recent interview, he made some abrasive remarks about the Central Bank Digital Currency or CBDC that are soon to be launched by many countries worldwide. It should be noted that China is the leading global authority in terms of CBDC testing and technology.
In the interview, Bass said that China is a communist regime that plans to take hold of the global economy by launching the digital yuan. He further added if the totalitarian regime of China succeeds in recruiting a massive adoption for the digital Yuan United States would have to suffer from severe consequences. Therefore, it is best if the leadership of the USA bans the e-CNY before it’s too late.
Chinese Digital Yuan is a Financial Tool to Gain Power
According to Bass, the digital yuan will act like an infiltrating financial tool for the government of China. He further added that China plans to use the digital Yuan to gain more power and influence in the world against its rival countries. He went on to compare the digital yuan with cancer for the American economy.
It should be noted that since 2015 the AUM for Hayman Capital Management LLP has reduced by a significant number. In 2021, the company AUM has reduced to below $450 million. As per Bass, the US government should understand that there are no such things as having a little amount of cancer. He acknowledged that his remarks are aggressive and hyperbolic. However, he strongly recommended that the US government should contain the plague of the digital Yuan.
Talking about the Communist party dominant government in China, Kyle Bass claimed that China’s One Belt, One Road initiative (OBOR) is a matter of grave concern for the USA. The OBOR initiative plans to invest in 70 countries ranging from East Asia to Europe. Bass claims that those countries who want China to invest in them would be forced to adopt the digital yuan. The government of China will have access to the social security number and personal information of every individual who uses the CBDC.
China has already issued $4.6 million worth of e-CNY in Sichuan and $6.4 million worth of digital yuan in Beijing for testing the market response. China is also planning to incentivize the tourists and athletes in the region by awarding them with e-CNY based prizes for the 2022 Beijing Winter Olympics Event. In this way, China is trying to introduce the new CBDC to not only mainstream users within its jurisdiction but also the international community.