In this episode, Anna Baydakova, Tanzeel Akhtar and Danny Nelson discuss what the GameStop stock market chaos can teach crypto, why the Bank for International Settlements is raising central bank digital currencies (CBDC) instead of crypto, and what privacy concerns exist with China’s digital yuan.
The big story of the week concerns the Reddit-based trading community WallStreetBets, which made stocks behave like cryptocurrencies – very volatile. WallStreetBets wreaked havoc in traditional markets after GameStop shares rose nearly 900% to around $ 380 in five days. The hedge fund Melvin Capital Management suffered heavy losses from betting against video game retailer GameStop.
The digital yuan was at the forefront of yesterday’s CBDC survey by the BIS, better known as the bank for central banks. There researchers said that 20% of the world’s population is likely to be using general purpose digital fiat in the next three years. What they didn’t say was the identity of the country with 18% of the world population…. China!
In the meantime, security researchers have begun to consider the potential risks of the digital yuan for users outside of China. The Center for New American Security released a report on how the Chinese Communist Party could get access to the financial data of people worldwide, including possibly Americans, who will use the Chinese system in the future.
Would you use such a thing and care about the privacy of your transactions?
Stories Mentioned In This Episode:
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