China plans to use the DCEP to spread its influence over rival countries, so the US should ban its use. This was stated by Kyle Bass, founder of hedge fund Hayman Capital Management, in an interview with The Epoch Times.
"#China is so good at…exploiting every crack, every nook, every cranny of opportunity…They take our openness & they exploit it." Tonight, @Jkylebass on the threat of #China's digital currency & how the #CCP could coerce nations to adopt it. @EpochTVus
According to the billionaire, the digital yuan would not only harm the US financially, but also allow China to take a strong economic position and gain greater control over international markets. He compared the instrument to a cancerous tumour:
"I think we should ban [Chinese digital] currency and prevent it from circulating in the United States. I know it sounds like hyperbole, but just think about it - you can't get cancer. You either have it or you don't. In my opinion, we cannot allow US corporations and individuals to transact using the central bank's digital currency."
Bass noted that the PRC government is able to require companies to use the digital yuan if they want to invest in the country. Participants in the One Belt and One Road initiative could also be forced to settle in the nation's digital currency.
"Imagine the stranglehold they will have on the world if they hold all our capital this way," Bass added.
The billionaire has often spoken out against China and calls the country an enemy of the US. Earlier this month, in a conversation with CNBC, Bass criticised US companies that speak out against social injustice in the States, but overlook human rights abuses in the PRC by continuing to cooperate with the state.
Recall that in July China tested a digital yuan with limited use options. In theory, such a tool would allow censorship of transactions.