China talks up digital yuan in push for multi-polar currency system

[X-ray]

Compared to Yuan, I think pushing BRICS currency is more reasonable and more accepted by more people. The reason is because BRICS currency also has the same goal of de-dollarization, backed by more countries, and, the framework is clearer. When China wants to push Yuan to be the same currency as USD or Euro, they need more than just economic stability, but also trust and transparency, which is still a challenge since Yuan is fully controlled by China Central Bank, and maybe only a few countries are interested in it and its usage is still limited. But maybe China with its overprotective policy towards its economy also does not want BRICS currency to be bigger than their own currency - it can be said that they are still hesitant in this matter and prefer to push their own currency.

I'm also thinking the same thing, their BRICS currency makes the most logical decision.

However, it shows that BRICS country aren't really solid, maybe each country just have their own interest and try to make their own currency ahead, trying another attempt of domination to compete with USD domination.

So far, nothing comes close to USD domination , even if BRICS released its currency I'm not so sure it will succeed.

[Die_empty]

I'm also thinking the same thing, their BRICS currency makes the most logical decision.

However, it shows that BRICS country aren't really solid, maybe each country just have their own interest and try to make their own currency ahead, trying another attempt of domination to compete with USD domination.

So far, nothing comes close to USD domination , even if BRICS released its currency I'm not so sure it will succeed.

The tariff war caused by Donald Trump has shown the world that its dependence on the US economy (dollar) can be weaponised. Some of the reasons why some countries suffered from these sanctions are not even trade-related (e.g, Canada and Mexico were targeted because of Fentanyl flowing through their borders into the US). It might not be visible now, but smart political leaders are making moves to reduce overreliance on the US. This process might be slow but it is happening. More countries are trading in local currencies instead of the popular dollar.

[viljy]

In my opinion, a multipolar currency system does not contradict the intentions for the expansion of the yuan. After all, it is clear that the yuan will never take the place of the dollar; that is, there will be no absolute dominance of one currency. Therefore, there is no threat from the yuan. In the future, international trade will be conducted in the local currencies of the trading partner countries. The dollar will be just one of these currencies, as will the yuan. But there will definitely be no global currency. Bitcoin can be somewhat similar to a global currency, but also only among a limited number of countries.

[jaberwock]

They can implement this easy through BRICS and the other and new countries that have become a part of it. They have to make this globally used for them to beat the West not just in military powers but mostly in economic status.

China is I think doing well in terms of economy already, so this can be just addition to make them more stronger if it became a success. For the CBDC to use globally, I think I doubt that because others have this too and then we also have stable coins and regular cryptos.

CBDC I think is already happening in China and I've seen a thread about it and articles done there.

While this pushes for more centralization on their end, they already got a lot of centralization happening in their country through finance and transactions with their partner companies like Alibaba.

I think yeah, I too have heard of it. This came out later after the said ban of regular cryptos on their country. It is like a replacement to it but that seems better than nothing at all. CBDC is still like a crypto as they utilize the technology called the Blockchain. Centralization is only normal if we are talking about locality, though maybe your point is that China is being so influential.

[Kelward]

Some of my thoughts on this are that what happened to BRICS? China a member country is pushing for a unified currency. China is doing this because the want to compete with the dollar so as not to be have their economy easily affected by global policies on when using the dollar. People will need more incentives if they have to use the digital yuan over the digital dollar.

My thoughts too, with they way the member countries where pushing for BRICS you'd think that something positive would have materialized by now. With what China, is pushing for now it clearly shows that they all have selfish interests and that is why BRICS is still at the level that it is now. China, is a global dominant force and they want to do everything possible to reduce the dependence on the US dollar for international trade. Let us see how far they can go but I know that US dollar remains the preferred traditional currency for trade and reserve.

[CryptoBuds]

In my opinion, a multipolar currency system does not contradict the intentions for the expansion of the yuan. After all, it is clear that the yuan will never take the place of the dollar; that is, there will be no absolute dominance of one currency. Therefore, there is no threat from the yuan. In the future, international trade will be conducted in the local currencies of the trading partner countries. The dollar will be just one of these currencies, as will the yuan. But there will definitely be no global currency. Bitcoin can be somewhat similar to a global currency, but also only among a limited number of countries.

Well said, China's efforts to expand the renminbi do not affect or contradict the idea of ​​a multipolar monetary system. Unlike the US, they force and try to impose the world to use USD, they do not want international trade transactions to use currencies other than USD. In contrast, although China is expanding the influence of the yuan, it does not prohibit or deny transactions in the currencies of other countries (China's trading partners). That means they are pioneering and want other countries to do what they are doing, looking to expand their currencies instead of just relying on USD or 1 single currency.

The goal of China and BRICS is to help the world reduce its dependence on the USD and create a multipolar monetary system, not to seek to replace the USD's dominant position.

[ellie888]

Yeah, it really looks like China is pushing hard to make the digital yuan a bigger player worldwide. Calling it a “multi-polar system” might just be a way to soften the message, but at the end of the day, they probably want the yuan to have more influence — maybe even challenge the dollar’s dominance. Whether that will actually happen is another story though.