Some have suggested the digital yuan could replace the global currency role currently played by the US dollar. Image: Facebook
CNBC: China’s digital yuan could pose challenges to the U.S. dollar
China is beating the U.S. when it comes to innovation in online money, posing challenges to the U.S. dollar’s status as the de facto monetary reserve. Nearly 80 countries — including China and the U.S. — are in the process of developing a CBDC, or Central Bank Digital Currency. It’s a form of money that’s regulated but exists entirely online. China has already launched its digital yuan to more than a million Chinese citizens, while the U.S. is still largely focused on research.
The two groups tasked with this research in the U.S., MIT’s Digital Currency Initiative and the Federal Reserve Bank of Boston, are parsing out what a digital currency might look like for Americans. Privacy is a major concern, so researchers and analysts are observing China’s digital yuan rollout.
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WNU Editor: The problem with China's aspirations to be a major player in the financial world is that many do not trust Beijing. Specifically .... there is no stability .... Another group of U.S.-listed China stocks plunge as Beijing regulators crack down (CNBC).
But I still believe that with time this will change. And the shock-wave will begin to happen when China starts to demand foreign buyers of its goods to pay in Chinese currency, the U.S. included.
Update: Here is a good explanation on why China is moving to a digital currency .... The real motivation behind China’s digital yuan (Asia Times).
