Will China’s Digital Yuan Displace the US Dollar in Global Trade?
The U.S. dollar became the world’s reserve currency because it was stable and easily transferable. It also enabled the U.S. to penalize sponsors of terrorism and genocideChina has just launched its Digital Currency Electronic Payment System, called variously the electronic yuan or electronic renminbi (abbreviated e-CNY or e-RMB). It will likely thwart Alipay and WeChat Pay’s dominance in China’s financial tech market and allow the government to track almost all financial transactions in real time. There are, of course, international implications to China being the first country to roll out a digital currency backed by the central bank. Can the Digital Yuan Compete with the Dollar for Global Dominance? Some analysts now see China’s move to a digital currency based on blockchain technology as intended to displace the dollar. Right now, eighty-eight percent of global trade interactions are in U.S. dollars, followed by the euro, and Read More ›
