Kyle Bass, the founder and principal of Hayman Capital Management, said in a recent interview for EpochTV's "American Thought Leaders" that China wants to have a "massive influence around the world" with its upcoming digital currency, The Epoch Times reports. Bass warns Beijing might get too much power with its digital yuan so that it could clean out all the inappropriate views against the regime.
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"So imagine, if you and I were sitting here in this interview, and I said something negative about the Chinese Communist Party and I had accepted the digital yuan as payment, they could just turn it off or they could restrict my ability to buy a plane ticket to China," he said.
Bass added that China's authorities could influence anyone the same way they influence their own people if their digital currency would get global adoption. While he does not expect the Chinese digital currency being a global reserve currency anytime soon, the increased use of digital yuan in settling cross-border transactions would be "worrisome," Bass noted.
The Hayman Capital Management founder is known as a rhetorical critic of the Chinese Communist Party. At the same time, financial reports filed with the US Securities Exchange Commission (SEC) indicate that he his investment funds received investment capital from at least one tech company based in China.
Previously in July, Deputy Governor at People's Bank of China (PBoC), Fan Yifei, said that cryptocurrencies like bitcoin (EXANTE: Bitcoin) and stablecoins pose threat to China's financial stability. He also called for the separation of private digital currencies and central bank digital currencies (CBDC).
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