Bitcoin Forum

China is sprinting its testing on the digital yuan. It will not take too long before the digital Yuan is executed and it believes China will become less independent of the US Dollar.

Is this a good thing or will China become even more economically powerful and therefore a threat? https://www.worldcoinindex.com/nl/news/chinese-central-bank-deputy-governor-wants-china-to-accelerate-pboc-rollout
And We already know that China is aiming for global domination specially in terms of economy, and I am sure they are seeing this digital yuan as a possible many tools they can use to entice more countries to go away from the domination of the US Dollar in international commerce. However, many countries right now are also starting to get wary of the intention of China, at least in part this is exposed with the pandemic. Many countries are now starting to resist the influence of China. Many are now seeing that China can be a trap. Personally, I don't see China to be the one to dominate of the vacuum that will be left by USA in the global commerce, that position is reserved for another (still emerging) entity.

We don't get to decide which country dominates the financial scene and as for other countries being wary of the intention of China, it's not any different from that of other countries which want more power.
Reaching a moral stand on which is a better option is not an easy decision to make.

Personally I don't see how a CBDC would help accelerate China's bid for more dominance, they would get early bird privileges but other nations would be able to successfully replicate it in their own States and create a more decentralized network.

That will happen in your dreams, China can never be independent of the USD, they can only try more. This digital currency of a thing is not as important as many of you are viewing it, it will benefit more Chinese and will add only a few extra to Chain. The country cannot function in isolation, and there is no way Yuan can be trusted like the USD, at least not for decades when it comes to stability and reality. There must be a currency that fits a lot of characters that are dependable and peggable for the global economy. That is what the USD is doing right now, and it's doing it well, only that the Chinese are only looking for ways to defeat it, but such would not happen in just a day.

And as long as Chinese people are also moving around the world and transact globally, the USD will always be needed since it penetrates deeper.

In China, it has been exactly a year since they officially launched their digital yuan into circulation. Is it still being tested there? China may get some benefits in connection with the launch of its digital yuan, but this is only an improved form of government cashless payments. These advantages must be consolidated in practice. But so far, we do not see feedback from the Chinese or from other countries about the circulation of the digital yuan. So far, this is unlikely to have any noticeable impact on the dollar. In addition, the US is also going to issue its own digital dollar.
On the other hand, China is largely dependent on the technologies of the United States and the West. Therefore, it is hardly possible to talk about some kind of his dominance over the dollar.

China is already "less dependent on us dollar" if they want to, they just do not want to because it is smart to own that much dollar both in cash and in debt. It allows them to leverage their future expenses, for every dollar they are owed, they could spend many times of that today, saying they will pay later when the debt they are owed to is paid.

This is why I do not believe the whole discussion about them not wanting to use dollars anymore, they are very much in love with it because the whole world uses it, and they could own literally nation sized lands in all of Africa by using dollars, they are literally growing their landsize by just purchasing using dollars.

Both are fiat and both are centralized and both can be easily manipulated by their government also both of the currencies are under the control of the central bank. But regarding the US dollar, we have an open economic system where they allow people to use and invest in any asset they want including cryptocurrencies on the other hand in China Yuan they have a communist country and they won't allow any other asset like bitcoin to take the place of their fiat which can have a bad effect in long term and that's why between these two I would go for US dollar.

Unless the majority of the world abandons the US Dollar, China will still be dependent in using it for foreign trades. Only a few select countries are willing to trade goods in exchange for CNY, and the rest of the world still deals with USD a lot. Even if they were the first one to introduce the digitization of their currency, most of the success of their CBDC will still be dependent on the amount of people willing to use and receive it. They can force their people to use it as long as they like, but outside of China, it'll be a hard task to do that since there really isn't any incentive to use digital Yuan just yet.

So you think that China is dependant on US dollar because it does not have digital Yuan?

It is dependent on US dollar because every other country that china wants to deal with does not accept a currency that is not widely accepted, does not have huge liquidity, assets are not evaluated in it and is from a country that does not respect private property and freedom. Digital Yuan does not address any of this issues.

both countries need the market with each other, and they both dependent on each other despite the rivalry. even when countries are already dedollarizing, they will still need to trade with the US since most of the product buyers are Americans.

and also the CBDC of China seems to be flipping, many Chinese are not using it but thier alternatives like the alipay and wechat.

Doesn't seem to me there'd be any benefit of holding digitalized Yuan ever unless China compelled bilateral transactions be conducted in their own currencies (at which point countries would just conduct commerce elsewhere).

This just seems like a move to introduce more fiscal control over Chinese citizens. I wouldn't expect the global commerce sector to pick up worthless digital tokens that are controlled on a whim by the communist Chinese party. It's taking a large gamble.

Slowly China Are fast becoming independent on the US dollars. And this progress from them would always continue. And not only China many countries Are valuing their currency locally and in local trades than any other countries currency.

But the hard truth is that US dollars still comes ahead of any other currency on the list of ratings and rankings that’s for sure.

I like past proposals invoking the yuan.

Gold backed yuan.


Then they touted petrol gold backed yuan.


That was back in 2015 and 2017 respectively.

There has never been a shortage of good ideas for the evolution of the yuan. For whatever reason, they simply never pulled the trigger.

I think digital yuan and CBDCs would become natural competitors to paypal, mastercard, visa card and 3rd party payment processors like apple pay. That is the segment of the market they would be targeting.

CBDCs would bash heads with credit cards and paypal much more than they would conflict with BTC.

What do you mean by less reliable? The volume of China's debt to the United States is more than a trillion dollars, and the trade exchange between the two countries is very large, so all that is happening is attempts to make the dollar weaker, but without a world war, the dominance of the dollar will not end.

The economic war during the Trump era was the beginning for China to diversify its investments away from the US dollar.

There are a couple of nuances:
1. The Chinese economy cannot exist without .. dollars :) As well as without US technology

2. The digital yuan is more needed for total control of financial flows within the country and control of the population. The economic situation and internal tensions, as well as the growing dissatisfaction with the "CCP party's course" are the reasons why China is preparing in advance the means for total control.

3. Replacing the fiat yuan with a digital yuan is just a paradigm shift of money, plus a little more control, but no impact on the dollar, the western economy or anything else, it will not affect

What do you mean by "executed"? e-CNY is already released and is being used. They passed some crazy number of transactions a while ago too.

China is already a massive economy, and it didn't become this big by creating centralized shitcoins. They became big by having an economy that is based on production not fake one based on credit and debt. As long as China keeps flooding other countries with their various products at much cheaper prices, they will continue growing economically.
Which again has nothing to do with their CBDC or Dollar.

Do you have anything I can read on this?

The digital yuan is something that will have more internal impact over China, rather than external impact over the global economy.
I don't think that China is being really "dependent" on the US dollar. USA is dependent of the countries, that are buying US dollars and US government bonds. I know that the Chinese want to receive payments in yuan instead of USD for the goods they are exporting. Also China wants to buy oil and gas from Saudi Arabia by paying with yuan rather than USD. The Chinese don't necessarily need a digital yuan, in order to achieve such "independence" from the US dollar. The competition for global dominance will continue, but I don't think that China is in a good shape, both financially and demographically.

@pooya87, you are asking questions in vain, because the OP got a permanent ban for plagiarism, and even if he hadn't, I sincerely doubt that he would be able to answer your questions.

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China is one of the biggest players globally, and whether someone likes it or not, the world needs their cheap labor and logistics. It is true that some countries have been wary of technology coming from China for a long time, because it is nothing new that they install spy equipment in some products - and some even say that in this way they are literally spying on the world on a level that is hard to describe.

FIAT is already 90% digital. Making it 100% digital won't really change anything.

The Chinese YUAN is already a powerful currency because it is backed by the Chinese manufacturing while the US dollar is backed by the US military. For now USD is slightly more powerful but this might change very quickly. I would say CNY deserves to be the world reserve currency more than the USD now because it is China that makes most stuff for us, not any other country.

A currency is and should be only as powerful as the manufacturing power it is backed by and CNY just delivers that unlike the USD.

Well in terms of currency dominance, the Chinese yuan cannot challenge the USD on the international market,  however the idea of introducing a digital yuan is a welcome development,  because it will help in improving China's economy. But the notion of a certain currency wanting to fill in the vacuum of the USD shouldn't be encouraged for now, because nations are still trying to stabilize their economy.

There is speculation that the Chinese digital yuan is seen as a potential rival to the US dollar as a global reserve currency. It is expected that the digital yuan will be used more widely in international trade and could potentially reduce the US dollar's dominance in the global financial system.

And another reason is to increase efficiency and reduce the cost of international trade which could be a threat to the US.

As we have been hearing on the news, a multipolar world is going to happen. There will be no single power globally dominating the world but a division of east and west. China is rich though, they have been lending for years and helping developing countries everywhere.

The US government is on the brink of default and they have to raise the debt ceiling or they are going down a risky path. Asking countries to buy US government bonds will be good to keep the interest low. However, many countries are also aware of how risky to hold US government bonds because they see them could be seized as well just like Russia's reserves that were seized.

as a country that has the largest population and very advanced technological development and almost all material needs for production can be made by themselves and many countries also need it because prices are indeed very competitive and obviously cheaper.
if indeed China will develop a digital yuan, it is not impossible and it is clear that it can be done and it will definitely be a very reliable prospect because almost world trade in the production sector is controlled by China, and they can just set everything with payment using digital yuan and all will certainly want to do that.
whether it will become a threat to the US, from the past until now they have always been a business competitor and clearly will be a threat that cannot be ignored.

Being independent from the US Dollar is a good thing and many countries are trying to achieve it. The question is how well the digital yuan is going to be accepted by investors. Merchants are probably happy about the digital version as it's going to make international trade more easy. But I don't think that any of the companies will sit on the digial yuan. Most of the international companies will switch back into their own fiat money quickly. As for investors I don't think there is a strong demand to invest into the Chinese currency at the moment. Tensions are high between China and USA, and if there is going up be a military conflict with Taiwan China could be isolated very quickly like Russia now. The Chinese economy still depends heavily on export and if there are disruptions the currency could collapse.

Fiat Yuan or digital Yuan there's nothing different between the two and the only difference is one will be easy for border-to-border payment and that's if the world trading world chooses to accept it which I do not see it happen.
Having said that, if the CBDC is not managed properly it will only lead to the devaluing of the Yuan cause the government will have easy access to mint more CBDC.
I believe the world should know by now that the only influence of the Chinese government is to provide aid as a loan to the lower class countries so they can use them in a modern slavery way. Apart from that, other countries will never support the global use of CDBC as payment and this is the reason why a lot of government agencies, the SEC, etc are against DIEM then.

90 percent really? I think that's too much or too quick knowing that the digital currencies like the CBDCs have only been invented recently. They aren't the same with the cryptos which were already known long time ago so the dominance of crypto over them is still big but if ever the fiat will turn 100 percent digital then it can make a lot of changes but I think not all are going to be happy about that as they find it inconvenient especially to those who are poor people who have less knowledge and resources to run a digital currency. If in between the China and US currency wars, I think the US will remain to be the leader for both digital or local.

This got me thinking.

Isn't it interesting how China have managed to implement their own digital CBDC so shifty in comparison to the United States and other western powers?
It is just a take on how autocracy works, the CCP do not care the opinion of the people and the privacy of others, those who have read a bit about the surveillance in China knows how bad things are.

Added to the control of the population, they also did this so they can go ahead the implementation and massive adoption of the digital dollar, to protect their own interests, both economical and political.

That's not so.I found an article where it is claimed that in offline stores the cashless payment was 42%, so 90% is an incorrect number.Cashless payment is not possible in villages and other small settlements,which are full in China.And the fact that they are striving for online payments is good, now many countries are moving away from cash and this is a process of progress,I think.

The high rate of internet usage, a supportive regulatory framework and the government's push for a cashless society with COVID-19 as the impetus to introduce the digital yuan to replace physical  bank notes all contributed to the success of mobile payments in china. China is rapidly developing into a cashless society using a new digital currency, called the digital yuan or the digital RMP to overthrow the US dollar and challenge other crypto currencies like Bitcoin. But unlike blockchain technology, China's digital currency will lead to a new era of surveillance and control over the China economy .

The competition of China and America in many different fields, they all want to become the hegemon of this world. With the economic field from my observation point of view in recent years China is more dominant and they are also on the rise to continue to maintain this new power status. However I question myself as to how the CBDCs will play out in this competition, there is really no point where I can compare them.

You might have noticed that China are buying up most of the Gold in existence too, so you might find a future where China introduces some kind of currency that are backed by Gold. That is a currency that will be very popular, but also something that would need a lot of transparency ....which China are not known for in the past.  ::)

People have seen the debt in the USA and they are seeing large Banks making the same mistakes in the USA, so they have reasons to doubt the US Dollar.  ::)

It has been precisely one year since China formally put its digital yuan into circulation. Are they still testing it there? China may reap some benefits from the introduction of its digital yuan, but this is really a more advanced version of government cashless transactions. These benefits must be strengthened in actual use. But as of now, neither the Chinese nor representatives from other nations have commented on the use of the digital yuan. The dollar is not expected to be significantly affected by this at this time. In addition, the US will launch its own digital currency.

China, on the other hand, is heavily reliant on Western and American technological advancements. It is therefore difficult to discuss some sort of his supremacy over the dollar.

China is indeed one of the countries that can always make surprises in the economic field for other countries, and many other countries are always wary of China's trap because a few years ago we were caught in the Covid19 outbreak which first originated in China and at that time almost all countries had problems with their economies, so with the design of the digital yuan I believe they must have other plans that are more profitable for their country in the economic field.

China’s position to up their game in the world trade and commerce is a very crucial step aiming at making the American Dollar not as powerful as it is today

Currently, all the 193 UN registered countries trade using the US DOLLARS, that’s the major contributor to the strength of the US Dollars

However, China’s yuan cannot take the place of the US dollars in so many other countries, in my opinion, they may only succeed winning the hearts of their brothers (Other Asian countries) such as Japan, Taiwan, India, etc

But on the world economy, the US dollar isn’t losing its glory anytime soon

china and America are actually the same, these two countries both want to become superpowers in terms of military and economy. but it would be great if china hit the market with their yuan and disrupted a market that has been dominated by dollars. With what China is doing, this will be a clear statement that America should not become a superpower that can dictate other countries according to their standards and this will probably be the beginning of the fall of the dollar in the global market.

One of the biggest misconceptions is that the dollar is easy to replace as the world's reserve currency.
The problem is that the place of an international reserve currency is a very difficult status. And just one "I want", or "I have the most population" - will not give such a status to any currency. Everything here is much deeper and more complicated. Let's first understand what the world's reserve currency is. if it is very simple - it is "money over money". Now I will explain. There are a huge number of states on earth with their own currencies, and the products that their economies produce. The question is - which is better - Chinese rice A at 300 yuan per kg, or the same variety grown in India at a price of 95 rupees per kg? (the numbers are completely out of my head). The answer is (for example) - in Southeast Asia, the average price of grade A rice on the market is $5 per kg. Do you understand what it is about? It's like taking a period before money relations (barter), when you tried to compare the cost of nails with the price of a kilogram of meat. So it is in the world economy - we need some kind of unification and convenience in evaluating goods. And the second is the convenience of calculations! But the third - this is perhaps the most important thing - trust in the chosen currency. Than the dollar is supported - I hope it is not worth explaining. Does the US have any dependencies that can affect their well-being - in fact, no.

And now, on this scheme and features, impose, well, for example, the same yuan. And what will you see? First, why does the world need to switch to a new measure of evaluation? Question 2 - what benefits and convenience will the world economy receive? for example, what about the information about China's gold reserves? She's classified! Will she be declassified? Is not a fact ! Why is it hidden?
And how can China guarantee the stability of the yuan to the whole world if it is an export-oriented country and it benefits from the low exchange rate of its currency. At the same time, it is highly dependent on WESTERN investments and technologies. But at the same time, the problems in the Chinese economy have not yet fully manifested themselves, and any new problem only worsens the state of the yuan?

This is of course a very simplified explanation, I would say "childish", but the main essence is conveyed.

I will say this - I don’t even consider the EURO a replacement, although it is one of the most realistically secured and "high-quality" world currencies!

China would do anything to be free from the US Dollar. I wait for the time when it becomes a reality and would like to see if will enable achieve the financial dominance, they think is being suppressed by the US dollars.
Assuming this happens, the next thing we would hear is that they are trying to dominate the BRICs. Well, that's by the way what I like about its central bank digital currency (CBDC) is that, it has been in developed since the past couple of years. And it has gone through several testing phases unlike other countries that just jumped into it without any test and the project is failing woefully becasue they didn't do their due diligence.

China is not looking to get rid of the US dollar, it is looking to overtake it and take the dominant position of the US dollar. I think this will happen, but it won't happen soon because they will have to face many challenges from the US side, Americans will not sit idly by and let China get ahead. I do not support either of these two countries, because neither is better than the other, all for their own power and not for the other. But I love this currency war happening because it's not fair that the world is dominated by one great power. We need the world to become more multipolar so that more countries have a chance to thrive.

Maybe China has taken such steps to strengthen its economic system. The Chinese government wants to reduce the use of the US dollar in their country. If they succeed in their digital yuan experiment, they may start using this currency instead of the US dollar. The Chinese government may be getting such a fad to reduce the global demand for the US dollar. Now it remains to be seen how successful the Chinese government can be in this new plan. But I believe no other currency can replace the US dollar. Because the demand for the US dollar has increased several times over before, the value of the Euro and the US dollar have been close recently.

Even if I don't like the U.S country, of course I will still choose the U.S dollar because it is the major currency in the world today and we know that. Then this also becomes the way here in our country so that I can convert my profit here to crypto or Bitcoin.

      This is because it is still recognized all over the world even by all countries and well-known businesses all over the world. Although,
it's also nice to have digital yuan.

let's accept the fact that USD is still the top fiat worldwide. wherever you go, any forex would convert your money from USD. so for now, there's no reason to compare these 2. because if you happen to be in the remote area or country, for sure, the probability that they would accept US dollars is higher  than accepting Chinese yuan. more people are also familiar with USD currency.
but if you want to store some, why not?

China is rising and it is true. We still don't know if China can beat the US to become the world's No. 1 power and whether the renminbi can replace the US dollar. But it is not true to claim that no currency or country can defeat the United States. You should learn the history of world currency, before USD, we had how many other currencies that once ruled the world. Moreover, the value of USD is increasing since inflation is not because its demand is increasing. Rather, the US is abusing its power to export inflation, causing the eurozone economy to fall into crisis, the euro depreciating, not the dollar increasing in value thanks to demand.

Digital Yuan has been launched by the Chinese authorities and even since its launch there have been many negative responses from the people there, because according to some people there the existing payment system is quite complete. Currently they are making great success clamps for this development project and more and more are encouraged to use Digital Yuan in comparison to crypto in general, moreover there is a specific prohibition regarding crypto there.

I recognize economic growth, technology and resource development increasingly rapidly in China, but specifically do not see the effects of Digital Yuan because long before that their economic power has grown rapidly through other sectors. Yuan Digital is only a tool and reason for the rejection of Bitcoin and Crypto in the country because of the nature of those who want to regulate, so that Yuan Digital is launched to break the dominance of cryptocurrency in the country.

Personally I do not see Yuan Digital will accelerate China's efforts to dominate and when talking about global trade is more political to wanting to control world trade in the ways they do.

The Chinese Yuan is not as widely accepted so despite the BRICS choosing the Yuan it will take a long time to overthrow the dollar

The digital yuan China is currently building won't make her world power, becoming a world power takes much more than just having to create a digital version of a fiat currency.
It might interest you to know that China is not the first country creating a digital local currency, there are other countries that already have their digital currency in place, and are working tirelessly to make the citizens of the country adopt the digital currency, example of such country is
Nigeria... Nigeria already launched her own digital currency by the name - ENAIRA.

I f China is clamoring for world power, and they think that's all it takes for any country to become world power, then they are mistaken, it simply means any country can wake up one morning, create their own digital fiat currency and start clamoring for world power as well..

Like you have written this is going to take a long time time for the Chinese yuan to be accepted generally and it's not going to be in the next few years. There had been remour that people are dumping the usd dollar for the Chinese yuan but that is not going to work as soon as possible. We still have us dollar to be stable since it life span had not expired.

I think that that information is a legitimate information and if Chinese happened to get what they are 12 by reducing the dollar from United State of America currency it will be very good because United States of America currency is the most valuable currency and people normally use it for importation and exportation of goods and services so if China sausage with their plan it will be better

"China will do everything to get rid of the US dollar. I'm waiting for the time when this becomes a reality, and I would like to see if this will achieve the financial dominance that, in their opinion, is suppressed by the US dollar."

You can reasonably prove:
1. China got free from the dollar? Those. did he become INDEPENDENT FROM THE DOLLAR? Arguments and facts - in the answer, I'm waiting :)
2. "SUPPRESSED BY DOLLARS" - give examples and arguments of how the dollar suppressed the Chinese economy with dollars.

And additional, "homework": Tell me about:
- the structure of China's gold and foreign exchange reserves
- the structure of the Chinese economy (orientation and flows of money, in what currencies)
- about the structure of internal and external debt obligations (in terms of debt currencies) ?

And we will get a real picture, ok? Or don't expect answers? It’s just that they are all easily verifiable, I’ll warn you right away ....

Maybe those people who dump their USD for the same purpose are the people from China? They need to support their own country and maybe they are being encourage of doing it in exchange for something valuable. There are still people that are outside China who dumps their USD.

It does not mean that they also have a hate with the US but they are only doing it for the sake of earning a profit. I don't think there is such thing as expiration when it comes to currencies unless if we are talking about scam cryptos here. It's been a long time since the US dollar was established and until now it still functions very well. This will continue like this until the future.

You love fairy tales, you don't like getting to the truth, and it's unclear why you don't like the dollar :)
And now about each statement in detail:
1. The yuan will replace the dollar or become a significant international currency. No. Given the political situation in China, and the growing economic difficulties in their economy - who needs a currency that has only problems behind its back? Just think why the US dollar is the world's reserve currency and the whole economy runs on it? And you will understand why the yuan will never take this place.
2. Smoothly move on to the second: I agree with what - a number of countries that consider themselves China's partners "in the fight against the dollar", simply become servants of China, being de-dollarized ... by the hands of China! And they will be highly dependent on China, in fact "economic slaves". This is the essence of what is happening in the BRICS - the yuanization of those who do not "turn on the brain." The goal is to save the Chinese economy by proxy (economy).
3. Why did the dollar not please you? With its help, everything is very simple, transparent and understandable, they form prices, conduct transactions, and you do not need to see the same goods on store shelves in different currencies and prices! Is there a real argument against the dollar? Well, just not a fairy tale "the dollar is to blame for the poor life of many countries"