China is looking to get rid of the US dollar

[(o)(o)ilikeboobs(o)(o)]

The US Dollar is a currency with global liquidity, and almost all national currencies must be converted to US dollars to purchase products from within the country. The dollar is the mediating currency around the world for most transactions, where US companies are where the strength of the dollar exists.

China is creating a cryptocurrency to eliminate the mediation of US dollars. This currency will transact in China, they will scale up payments globally.
I don't think China's monetary revolution will be successful because Huawei out of the 100 largest companies in the world has only 96. Hundreds of US companies have greater influence and much higher liquidity with the influence of a company from China.

[Febo]

China is looking to get rid of the US dollar

Having all your eggs in the same basket is bad. China is diversifying. Not just now, they are doing this for more than a decade. They mainly buy God and other currencies. Eventually will switch also to Bitcoin, but that will probably be closer to end of this decade. 

[palle11]

China is creating a cryptocurrency to eliminate the mediation of US dollars. This currency will transact in China, they will scale up payments globally.

And how can we prove that the same cryptocurrency won't be converted just like bitcoin or etheruem to the US dollar before buying any other fiat like in exchanges such as binance. China is making themself a big rival to US especially during the Trump regime. The Republicans have there way of trying to make larger political movement and statement, this might be the course of some of the business struggles within those two countries.

[Upgrade00]

I don't think China's monetary revolution will be successful because Huawei out of the 100 largest companies in the world has only 96. Hundreds of US companies have greater influence and much higher liquidity with the influence of a company from China.

Do you mean Huawei is the only Chinese company in top 100 global ranking and it sits at the 96th spot? If yes, then you should drop a source. Browsing through various websites which uses different metrics to rank companies, they all had Chinese firms in their lists occupying high positions;
Check • https://en.m.wikipedia.org/wiki/List_of_largest_companies_by_revenue
• Forbes Global 2000

There is an obvious currency war going on between the top ranked fiats, and with China leading the charge into digital block chain currency (CBDCs) this would give them an edge (in the digital curve) over other nations yet to embrace digital assets, I however do not think it would make the Yuan the global reserve currency.
The system of government in China makes it unfavourable for businesses and with such a heavily controlled financial market, firms would be less willing to hold their funds in a blockchain Yuan, which would function exactly as the traditional fiat.

[grabpopcorn536]

The US has another way to increase the liquidity of the dollar worldwide. They are in many different markets outside China. They are currently moving factories out of China. So China is looking to create a cryptocurrency and attract the Chinese people to hold them instead of the dollar.
China is taking a very creative step.

[Broly46]

I think it’s getting rid of capitalism rather than holocaust, but to up each own, it’s said petro dollar some time ago but nobody has slightly clue all the insider info, commoner like us just getting indoctrinated all the time.

[mindrust]

China is one of the major USD holders in the world.

If they hate it so much, why don't they dump it?

The reason is, there simply isn't anything better than the USD for that job.

Rank	Country	Foreign Currency Reserves (in billions of U.S. dollars)
1	China	$3,399.9
2	Japan	$1,387.4
3	Switzerland	$850.8
4	Russia	$562.3
5	Saudi Arabia	$501.8

source: https://www.investopedia.com/articles/investing/033115/10-countries-biggest-forex-reserves.asp

[TopTort777]

Just how China is going to get rid of US dollar? Forbit its exchange? Take all cash while people crossing border? Ok, this is weird, but can be done. But how they gonna be regulating all transaction? How they plan to do import/export payment with countries that use US dollars? Force them to do double exchanges?

[tyz]

China is creating a cryptocurrency to eliminate the mediation of US dollars.

China will continue to bet on the US dollar. For a very simple reason: Besides Japan, China owns most of the US government bonds and thus indirectly also USD. If China were to break away from the US dollar, they would sell the government bonds first, which according to current official figures they are not doing. For commercial transactions, it may make sense not to rely on a foreign fiat currency as an intermediate currency and to build an own electronic system. The only question is whether this can prevail. Because then all other countries that trade with China must also use the cryptocurrency and no longer the USD.

[mu_enrico]

OP's opinion sounds like many things wrong stitched together to make it right.
1. There is no obligation to use USD for international trade. Businesses did it simply because USD is the most stable currency. You know, volatility stuff.
In fact, each country wants to use its own local currency, and they occasionally do a bilateral agreement. For example https://theconversation.com/indonesia-and-china-inked-a-deal-to-promote-the-use-of-the-yuan-and-rupiah-the-political-and-economic-implications-are-huge-147493
However, since we are in the world of the market economy, it all goes back to supply and demand (no government intervention could change the dynamics in the long run).

2. I doubt central banks (not only China) create their own digital currencies to "eliminate" people's preference for USD. Well, if the fundamentals are unchanged, the US' CBDC would outperform China's CBDC.

[target]

China is one of the major USD holders in the world.

If they hate it so much, why don't they dump it?

The reason is, there simply isn't anything better than the USD for that job.

Rank	Country	Foreign Currency Reserves (in billions of U.S. dollars)
1	China	$3,399.9
2	Japan	$1,387.4
3	Switzerland	$850.8
4	Russia	$562.3
5	Saudi Arabia	$501.8

source: https://www.investopedia.com/articles/investing/033115/10-countries-biggest-forex-reserves.asp

The Chinese government is buying all the USD that are earned by the companies in China, they've been doing these for decades that they may be able to take control of the market. At the same time they also maintain the value of Yen as low as possible. Quite a strategy actually but it worked for them that they pullout a big solution to lift 800M citizen out of poverty.

Right now China is one of hte country that has the biggest reserve that they can also use to influence the use of their currency.

[disconnectme]

I think China can try but won't be successful, have you tried to do business in China, Chinese people prefer you pay them in USD to Yuan, just go to some of these developing countries, how many people in the countries want the USD as compared to their local currencies. I believe the trust in USD is higher than trust in any other currencies in the world

[posi]

Although, the Chinese government can be surprising sometimes through their centralized habit but I dont believe what the OP said about the Chinese government planning to get rid of US dollars through the creation of cryptocurrency which they have already and surely not meant for what the OP said. However, no prove link was provided by the OP.

[LeGaulois]

...

It's not a matter of cryptocurrency. For China, it's in its own interest to not rely anymore on USD but the country won't get rid of the USD before all this happens.

Without the Petrodollar, the USD would already be dead. The day the OPEC will start to accept selling petrol for something else than USD the things will start to change. And that's the only thing China is waiting. They do not import from the USA, they do it from Russia, Irak, Brazil, etc.
Another fact to consider is the commercial war USA/China

Also, the USD is losing power as the first foreign currency for 2 decades and it won't go better
With all this, when the dollar will lose its value and people won't trust it anymore.who will be interested in having and using this currency? nobody.

...

By getting rif of USD @OP want to talk about the USD used as a reserve currency and using for international trading, as well its USD bonds

[South Park]

The US Dollar is a currency with global liquidity, and almost all national currencies must be converted to US dollars to purchase products from within the country. The dollar is the mediating currency around the world for most transactions, where US companies are where the strength of the dollar exists.

China is creating a cryptocurrency to eliminate the mediation of US dollars. This currency will transact in China, they will scale up payments globally.
I don't think China's monetary revolution will be successful because Huawei out of the 100 largest companies in the world has only 96. Hundreds of US companies have greater influence and much higher liquidity with the influence of a company from China.

This is nothing new really, if you take a look at the past decade you will see that China is buying everything they can with their dollars, not only they are buying gold knowing full well that a global crisis is coming, they are also lending money to other countries and they are buying all kind of resources with their dollars, and I cannot blame them sooner or later the world will wake up to the fact they have allowed the US to flood the world with paper money that has less and less value as they keep printing more of it, and once when everyone tries the same strategy as China that is when we will see hyperinflation taking place all over the world but especially in the US.

[stompix]

Without the Petrodollar, the USD would already be dead. The day the OPEC will start to accept selling petrol for something else than USD the things will start to change. And that's the only thing China is waiting. They do not import from the USA, they do it from Russia, Irak, Brazil, etc.
Another fact to consider is the commercial war USA/China

If China wants to hurt the dollar that much they should stop exporting stuff to the US as they are propping the dollar more than OPEC does.

Let's not take into account numbers from 2020 with this pandemic but in 2019 OPEC production (including that which is not traded in $ and that for internal consumption) stood at 35.6 million barrels a day, that would be 13 billion barrels a year, at a price of 40$ per barrel that makes 529 billion, while China is exporting to US stuff and getting paid in $ $539.5 billion.  
The whole petrodollar stuff is so yesterday, it's just another myth that people who desperately want the US to fall still cling on it, I've been hearing this for ages and we will still hear is even when there will be no drop of oil left.

Rather than focusing on the petrodollar, you should watch out for the bitcoindollar as the majority only cares about the BTC price in $. 

Just how China is going to get rid of US dollar? Forbit its exchange? Take all cash while people crossing border? Ok, this is weird, but can be done. But how they gonna be regulating all transaction? How they plan to do import/export payment with countries that use US dollars?

Yeah, Apple will be forced to change prices to yuans for its customers, get ready!!

[Johnyz]

China is one of the major USD holders in the world.

If they hate it so much, why don't they dump it?

The reason is, there simply isn't anything better than the USD for that job.

Rank	Country	Foreign Currency Reserves (in billions of U.S. dollars)
1	China	$3,399.9
2	Japan	$1,387.4
3	Switzerland	$850.8
4	Russia	$562.3
5	Saudi Arabia	$501.8

source: https://www.investopedia.com/articles/investing/033115/10-countries-biggest-forex-reserves.asp

This is mind blowing considering that these two countries are making a lot of pressure with each other and yet, China is the top holder of Dollar and while USA are in debt to China. Creating their own cryptocurrency doesn’t mean disregarding USD because we all know that USD will remain the main exchange rate on every country and almost everywhere its acceptable, the influence of US is far better compare to China and that is why USD is a major currency.

[arallmuus]

If China wants to hurt the dollar that much they should stop exporting stuff to the US as they are propping the dollar more than OPEC does.

Which is why they have been exporting alot of their 95% done goods to Vietnam instead and let Vietnam deal with the remaining 5% then put on the label of Made in Vietnam for all those goods. You could find alot more Made in Vietnam goods nowadays compared with Made in China labeled goods 

The whole petrodollar stuff is so yesterday, it's just another myth that people who desperately want the US to fall still cling on it, I've been hearing this for ages and we will still hear is even when there will be no drop of oil left.

There are tons of crappy news nowadays about US especially when election is coming. The whole world seems to be using this to stir up some crazy news though

China is creating a cryptocurrency to eliminate the mediation of US dollars. This currency will transact in China, they will scale up payments globally.

China would want to create anything they could create. Anything that will make them #1 country . I have seen tons of stuff like this from few years ago especially when cryptocurrency is not yet a thing, they always want to beat the whole world on any aspect

[Hydrogen]

If venezuela issued a new cryptocurrency tomorrow, would anyone trust it?

China could have similar issues to venezuela. In terms of lack of trust. The CCP not being considered the most reliable or stable thing in the world.

In past years china announced they would back their native yuan currency with gold to implement a gold standard. Many news stories from china are later found to be false and do not pan out. Remember when china claimed they would "ban crypto currencies, exchanges" or "ban crypto mining". These news stories sent the price of bitcoin tumbling. Some of these news stories were later found to be false. Which did little or nothing to mitigate the damage inflicted.

Stability, trust and reliability are 3 main things people look for with currencies and assets. All of which could be areas where china is in short supply.

[verita1]

Theoretically, if enough countries adopted the digital yuan for international payment transactions over time, then it could one day challenge the dominance of the US dollar.

https://qz.com/1899402/why-chinas-digital-yuan-wont-internationalize-the-renminbi/amp/

I acknowledge the great effort that the Chinese government has put into creating the Digital Yuan, when officially launched, will mark the history of global currencies.

And it will open the way for other countries to continue developing their digital currencies.

Japan has also spoken out on the matter.
"No single digital currency will dominate the world," Bank of Japan now says.

https://cointelegraph.com/news/no-single-digital-currency-will-dominate-the-world-bank-of-japan-now-says

I think that now countries are against the clock to learn from countries that are entering the creation of their digital currencies to participate in the new economic model.