China is looking to get rid of the US dollar

[Kong Hey Pakboy]

US dollars are valuable since they get the Petrodollar deal with the Middle Eastern nations. As the world expands its economy and energy into other forms, the oil will decrease in proportion. For the US dollar to stay strong, they will need to find a place to liquidate their currency.
A common currency is a good idea, and now I see it as Bitcoin. It has global liquidity, is limited in quantity, and is community-owned.

In the distant future, we may witness another fiat currency replacing the USD as the world's reserve and trade currency. But I am sure that it is not going to be Bitcoin. I don't think that any of the countries would back a decentralized cryptocurrency to replace the USD. All the major powers want their own central bank currencies to overtake the USD, not some cryptocurrency.

did usd was replaced before ? Afaik it isn't yet because usd is still the standard unit of all currency so far that are being used the most then there's euro and the other one which I forgot ,  sorry. 

I don't know if it's possible for usd to be replace as the national currency but if ever it is , that won't be Bitcoin because Bitcoin is from the other world.  There are countries that can back a crypto but that is if they proudly made the crypto , China for example . 

Indeed. There is no way that China would replace or get rid of the US Dollar because it is the strongest world currency that billions of USD are circulating worldwide, so how come that China can make it possible to defeat the USD. We all know that most manufacturers are now in China because of the abundant labor, but it is still impossible because even bitcoin can't replace USD due to its decentralization.

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[proTECH77]

China can't get rid of US dollar because many  countries of the world are use to dollar in the areas of exchange market. Despite Chinese government is in competition with US government economy right now, show they are the strongest in the world. But dollar is more popular than crypto currency which some country still look at crypto currency as a scam currency.
Despite China quick found solution to covid-19 does not mean China will get rid of dollar. Dollar is a centralized currency which is more popular than any currency in the world. Chinese are still learning for where US are which they are very good economy area that is still making some country wonder the kind of strategies they are using that their currency is more valuable than other currency.
If  US re-elect Trump as their president I think it will hard for any China currency that will get rid of US dollar.

[bryant.coleman]

did usd was replaced before ? Afaik it isn't yet because usd is still the standard unit of all currency so far that are being used the most then there's euro and the other one which I forgot ,  sorry. 

I don't know if it's possible for usd to be replace as the national currency but if ever it is , that won't be Bitcoin because Bitcoin is from the other world.  There are countries that can back a crypto but that is if they proudly made the crypto , China for example . 

No. The United States Dollar has remained as the world's reserve currency ever since the end of World War 2. There hasn't been an instance where it was replaced by some other fiat currency. But the point to remember here is that the USD was not always at that position. Before 1945, it was not the reserve currency of the world. Check this chart below, and you will come to know:

[South Park]

It was always inevitable that China would want to break any ties with the US dollar, especially because they accepted a lot of debt in US dollars and this allows the American government to devalue that debt whenever they choose. The world always needs a reserve currency however and the dollar has been the "flight to safety" for such a long time that it's not going to change quickly. Nobody really trusts the Chinese government right now and the Chinese government doesn't even want their own currency to freely float - so they don't really have many options at the moment. They'll just diversify a bit more into Euros and other currencies I suppose.

China has been buying gold like crazy during the last years so it is obvious they are planning something, I do not think they will do something like backing their money with gold but it is possible they are slowly getting rid of as many dollars as it is possible and replacing such dollars with gold, because as we know sooner or later the US dollar will fall from grace and countries will stop storing it as the reserve currency of the world, and at that point what will countries use? Gold of course, and China will have a huge head start over anyone else.

[iv4n]

Not only China is becoming less independent of the US dollar but also Iran is trying to do the same by accepting cryptocurrencies.

You'll be reading this in the next article:
Iran Passes Law to Legalize Import Funding Using Cryptocurrencies

There's even a thread for that here in economic section: Iran accepting cryptocurrencies to avoid US Dollar - https://bitcointalk.org/index.php?topic=5285438.0
Well they are trying to avoid sanctions, and probably it will be easier for their supporters to send them crypto than to go through the banks with any fiat currency! Big players have their own ways of doing business, we know who are stronger players on the global stage and who are the weaker ones, and they play games for centuries! I don't believe in all the stories, and most of the stories about them are just conspiracy theories, its one of the ways how they keep people apart... I don't bother too much with them anymore, I think crypto can change all that for better and I hope that it will come sooner that most of us expect!

[jentak]

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.

I don't see how it is going to be possible - if it would people would use yuan already instead of usd.
So one centralized currency (even digital one) won't replace usd as another centralized currency.
That's why bitcoin and other cryptos find their users - it is decentralized, so not tied to any country's economy

[Spacewalker]

China has been buying gold like crazy during the last years so it is obvious they are planning something, I do not think they will do something like backing their money with gold but it is possible they are slowly getting rid of as many dollars as it is possible and replacing such dollars with gold, because as we know sooner or later the US dollar will fall from grace and countries will stop storing it as the reserve currency of the world, and at that point what will countries use? Gold of course, and China will have a huge head start over anyone else.

This is not surprising given the amount of dollars being printed heavily lately. China has always been famous for being cautious in such matters and their current trade war with the United States is pushing them even more to stock up on gold. But I'm not sure if the world is ready for a return to the gold standard in the economy. The gold standard is good for getting out of a severe crisis and devastation in the economy, but then it starts to hinder an increase in growth rates. Therefore, I believe that the current purchase of gold by China serves as a protective measure and not a total reversal towards the gold standard.

[Sithara007]

Well.. they can try, but it is almost impossible to get rid of the US Dollar. There is no viable alternative available. US Dollar remains the world reserve currency, and the preferred currency for international trade. In the past also, various other fiat currencies such as Euro and CNY have tried to replace the US Dollar, but they failed due to lack of interest from countries outside their own region.

[Musekay]

China over the years have really proved to be a force to rekcon with. They are seriously diversifying and trying out new things as well as employing new strategies. Well lets still observe and see how this will play out.

[so98nn]

Well.. they can try, but it is almost impossible to get rid of the US Dollar. There is no viable alternative available. US Dollar remains the world reserve currency, and the preferred currency for international trade. In the past also, various other fiat currencies such as Euro and CNY have tried to replace the US Dollar, but they failed due to lack of interest from countries outside their own region.

The valid reason for this: Import-Export of the foreign and domestic material, commodities etc.

Thing is, not everything can be cooked inside a single country since there is always “something” that needs to be made available from outside your home country.

To make this trade China may not accept the dollar but opposite party will ask to make it dollar transaction or value the stuff in dollar costings.

So yeah it’s almost next to impossible to boycott dollar currency.

[South Park]

China has been buying gold like crazy during the last years so it is obvious they are planning something, I do not think they will do something like backing their money with gold but it is possible they are slowly getting rid of as many dollars as it is possible and replacing such dollars with gold, because as we know sooner or later the US dollar will fall from grace and countries will stop storing it as the reserve currency of the world, and at that point what will countries use? Gold of course, and China will have a huge head start over anyone else.

This is not surprising given the amount of dollars being printed heavily lately. China has always been famous for being cautious in such matters and their current trade war with the United States is pushing them even more to stock up on gold. But I'm not sure if the world is ready for a return to the gold standard in the economy. The gold standard is good for getting out of a severe crisis and devastation in the economy, but then it starts to hinder an increase in growth rates. Therefore, I believe that the current purchase of gold by China serves as a protective measure and not a total reversal towards the gold standard.

I agree, the gold standard will not make a come back anytime soon unless there was a crisis so profound that governments found themselves forced to do it as they get so many advantages by using the fiat system, what we are seeing is nothing more but a battle for the supremacy of the world and China is refusing to play on the US terms anymore, and the only way for them to do this is by obtaining gold which is the only form of money that currently can act as a hedge against all the money printing the US has being doing for a government.

[Sithara007]

Well.. they can try, but it is almost impossible to get rid of the US Dollar. There is no viable alternative available. US Dollar remains the world reserve currency, and the preferred currency for international trade. In the past also, various other fiat currencies such as Euro and CNY have tried to replace the US Dollar, but they failed due to lack of interest from countries outside their own region.

The valid reason for this: Import-Export of the foreign and domestic material, commodities etc.

Thing is, not everything can be cooked inside a single country since there is always “something” that needs to be made available from outside your home country.

To make this trade China may not accept the dollar but opposite party will ask to make it dollar transaction or value the stuff in dollar costings.

So yeah it’s almost next to impossible to boycott dollar currency.

Well.. that will be more like barter transactions based on value in USD. Also, there is a chance that they can do the trade based on CNY. However, doing it based on CNY can be tricky. I have checked the exchange rate of CNY for the last few months, and I could notice a sharp uptick in the rates for CNY. A few months back, the exchange rate was like 1 USD = 7.2 CNY. Now it is almost 10% lower, at 1 USD = 6.7 CNY. If the traders want to deal with this volatile currency, then let them do it.

[manfredmann]

Well, other countries are aiming to buy more dollars from the US because that currency keep strong due to their strong and establish economy. If they wanted to get rid of US dollars in their country then they should stop trading with china. However, they can't do it because every country need others to make a trade and benefit mutually in the trade.

[DrG]

As long as they NEED the US they will continue to prop up the dollar but when they feel they don't need the relationship anymore they'll kick the US to the curb (or at least attempt to). They are still reliant on US "invention" and creativity and some technical know how - they've been trying to build commercial airliners for years and even with top rate engineers and supercomputers they're still having a hard time vs what Embraer, Airbus and Boeing put out. This will change of course but it will take time. During that time they don't want their USD in holding to got to the garbage dump.

[culuuton]

Well.. they can try, but it is almost impossible to get rid of the US Dollar. There is no viable alternative available. US Dollar remains the world reserve currency, and the preferred currency for international trade. In the past also, various other fiat currencies such as Euro and CNY have tried to replace the US Dollar, but they failed due to lack of interest from countries outside their own region.

China is said to have a strong economy of their own but if they wish to get rid of US dollar, they should have done it years ago. Right now, almost all of the countries considered US dollar as the main and reserve currency so it's very impossible to replace its position just because of the aim of China to make their own currency so that US dollar will soon be vanish.

They didn't have enough the resources to do this a few years ago although the desire to get rid of the US dollar appeared in their mind for a long time. For now, they're probably just testing, no one believes they can finish it in the next few years.

[bits4books]

Quite an expected result of the trade war that the United States launched.
If China manages to completely exit the dollar zone without incurring losses , it will be a precedent at the level of Brexit, if not more.
And now imagine that this will actually happen - and then no one will be able to stop this train on its way to the complete capture of Africa. The EU is too weak and has too many internal problems and America will have no leverage left except to declare a real war. And there will be no war because otherwise it will be the stupidest decision in the history of the United States.

[tbterryboy]

I would totally understand why they may want to do something like this, after all USA dollar is becoming more and more worthless every day, I would love to not have dollars as well, I already do not have any dollars but I mean I wouldn't want to have dollars if I had it as much as China has.

Plus having dollars is some sort of threat over USA, when China has trillions of dollars worth of bonds, treasury, stocks, cash, debt and other stuff basically all around own a big portion of USA's deficit, that just means China could suddenly sell them all to some other country for pennies on the dollar and crash American economy.

Or that was what they imagined would happen, however when they saw America printing 4+ trillion just in few months during pandemic, they realized having dollars would worth nothing.

[South Park]

I would totally understand why they may want to do something like this, after all USA dollar is becoming more and more worthless every day, I would love to not have dollars as well, I already do not have any dollars but I mean I wouldn't want to have dollars if I had it as much as China has.

Plus having dollars is some sort of threat over USA, when China has trillions of dollars worth of bonds, treasury, stocks, cash, debt and other stuff basically all around own a big portion of USA's deficit, that just means China could suddenly sell them all to some other country for pennies on the dollar and crash American economy.

Or that was what they imagined would happen, however when they saw America printing 4+ trillion just in few months during pandemic, they realized having dollars would worth nothing.

True, but there are several problems with doing that, to begin with the US is printing a lot of money, which means that each one of the dollars that China has now has an even lesser effect should they decide to dump them on the market, and the second problem is that they actually exchanged products and services with real value for something that losses it every day, so by dumping the dollar in such way they will be damaging themselves in the process as well, so the best strategy is what they are doing right now, which is to buy everything they can with their dollars while they still have value and buy also assets that will reevaluate in the case of the fall of the dollar like gold.

[jaysabi]

Plus having dollars is some sort of threat over USA, when China has trillions of dollars worth of bonds, treasury, stocks, cash, debt and other stuff basically all around own a big portion of USA's deficit, that just means China could suddenly sell them all to some other country for pennies on the dollar and crash American economy.

They couldn't do this without inflicting as much or more damage on their own economy, and more importantly, their political structure. Remember, the communist party has to fuel rapid growth to maintain power. As long as the economy is rapidly growing and the people believe it's because of the government, they have domestic stability. The greatest threat to the political class in China is economic growth stalling out.  They have no political rivals because of the economic prosperity the party has ushered in. Things get messy real fast when that stops, so the Chinese government needs a stable USD as much as we need them to buy our debt.

[ene1980]

Remember, the communist party has to fuel rapid growth to maintain power. As long as the economy is rapidly growing and the people believe it's because of the government, they have domestic stability.

So what do you think that a country should do, i am not a fan of the ruling party of China but i am impressed by their development and growth and how it is challenging many other countries and for the people development is necessary and if they think that the government can provide and they are happy with it, then what is the issue.