A fintech expert claims that the planned Chinese digital yuan could pose a serious challenge to the dominance of the US dollar.
Speaking on CNBC’s Squawk Box Asia, Richard Touraine, author of No Money: China’s Crypto Revolution, said: “Remember that China is the largest trading country and you will see the digital yuan slowly replace the dollar when buying things from China, if you spend about five In ten years, the answer will be Yes. The digital yuan can play an important role in reducing the use of the dollar in international trade.”
He claims that some countries want to reduce their dependence on the US dollar when trading, which is accelerating the adoption of the digital yuan.
He continued his statement by saying: “What you will see going forward is a dip, which is a risk management exercise that seeks to slowly and perhaps slightly reduce dependence on the dollar, from 100% to 80% or 85%.” The central bank has been working on issuing a digital currency for the central bank, where for several years the People’s Bank of China has been implementing a central bank digital currency (CBDC) since 2014 and is believed to be ahead of others provinces.
Last November, China proposed the establishment of a Beijing-based trading platform for cryptocurrency trading as part of the State Council’s plan to support financial services in the capital. The platform will also promote the use of the digital yuan.
China’s Ministry of Digital and Information Technology and the office of the Central Commission for Cyberspace Affairs also want faster CBD testing and institutional banks have been asked to create the necessary infrastructure with businesses, as the country sees itself becoming a world leader in the blockchain space within the next five years by nationalizing the industry Ban private digital currencies.
During this year’s Winter Olympics, China created at least 261 million digital wallets, equivalent to a fifth of its total population, for its central bank digital currency (CBDC), called digital renminbi (RMB).
The report says that the volume of the deal amounted to 87.5 billion. However, Turin denied speculation that China would use the CBD to help Russia circumvent wide-ranging economic sanctions imposed by the West to invade Ukraine. However, it has not been tested internationally. base.”