Will China take over the world with the Digital Yuan?

[Abiky]

It looks like China wants to stay ahead of the game by launching its own digital currency before the rest of the world does. If it becomes the pioneer of "Central Bank Digital Currencies", it might become the largest economy in the mainstream world. This means the US Dollar will no longer be the world's reserve currency, as China gains strength with the Digital Yuan. Low fees and blazing-fast settlement speeds will make China's digital currency much more attractive than existing currencies. If the US fails to launch the "Digital Dollar" before China, it could lose its supremacy over the mainstream economy.

What are your thoughts? Will China take over the world with the Digital Yuan? Or will everything else remain the same? Do you think China's Digital Currency will force other countries to launch digital currencies of their own? How long do you think the transition will happen from paper money to digital Fiat? Your input will be greatly appreciated. Thanks in advance.

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[jackg]

Have you looked up a chinese currency on forex markets?

They don't want anyone trading it. They randomly hyperinflate their own currency to encourage people to invest their funds or to spend (I don't know if they give warning on that or if it's random).

Also, countries generally don't want to trust other governments (the European commision combined with the common wealth was very good at bringing a lot of economies into one umbrella and removing the "xenophobia" against governments). The two, now split, will likely be able to do that but as a single cooperation scheme it was quite big.

[Refrumatrix]

The digital yuan won't double their money, it doesn't make sense for China citizen to put their money on digital yuan, do you heard about what's going on with chia coin in China lately? Chinese people are rushing to buy SSD and HDD to farm chia coin which is already causing scarcity on HDD and SSD in China right now, who cares about digital currencies that can double in value??

[hatshepsut93]

If it becomes the pioneer of "Central Bank Digital Currencies", it might become the largest economy in the mainstream world.

Economies grow in size when people produce goods and service, not when the government prints money.

Low fees and blazing-fast settlement speeds will make China's digital currency much more attractive than existing currencies. If the US fails to launch the "Digital Dollar" before China, it could lose its supremacy over the mainstream economy.

Currencies don't have fees or settlement speed, payment networks do. Even if digital yuan will have these things, there are other factors that will prevent its global adoption. Citizens of many countries will be suspicious of it, governments will limit its use, people don't have as much faith in yuan as they have in USD, existing networks are quite satisfying to most users, even if they aren't as fast/cheap.

[stompix]

This means the US Dollar will no longer be the world's reserve currency, as China gains strength with the Digital Yuan. Low fees and blazing-fast settlement speeds will make China's digital currency much more attractive than existing currencies.

Makes no sense, settlements speeds or low fees are not the pros of a reserve currency, it's not called reserve because you spend it daily 
The digital yuan will present as much interest as a reserve as the yuan itself,  on pair with the Canadian dollar and 3 times lower than the yen, not even close to what the dollar and euro are sought for. Those numbers might be even less since this digital version would come with the perk of allowing the other nation to be in complete control of your reserves...which is against the very principle of it.

If the US fails to launch the "Digital Dollar" before China, it could lose its supremacy over the mainstream economy.

People overestimate the role of digital currencies and their impact.
If people would have that much trust in the yuan they would be dealing with Chinese banks and their payments gateways already, but they don't no matter the advantages, a currency that is not going to be accepted by other nations is a useless one and I don't see how the US or the EU will allow it. Look how Iran is trying to avoid sanctions with crypto, why it doesn't work? Because crypto, gold, dollars, or oil people don't trade with them, what western bank do you think will push for a digital yuan adoption?

Or will everything else remain the same?

Exactly the same, all of it.

[totaleclipseofthebank]

Well, China can be the pioneer with digital yuan but developed countries (especially the Western) will not accept it. ETF maybe follow their lead. This will make the currency usable only within China. The government can encourage their allies to use the Digital Yuan but I doubt that the facilities of those countries are strong enough to maintain it.

So the answer: China cant take over the world with The digital Yuan

[Fortify]

What are your thoughts? Will China take over the world with the Digital Yuan? Or will everything else remain the same? Do you think China's Digital Currency will force other countries to launch digital currencies of their own? How long do you think the transition will happen from paper money to digital Fiat? Your input will be greatly appreciated. Thanks in advance.

I cannot see China taking on the role of the reserve currency of the world for a very long time, if ever. The Yuan, digital or not, is still not a freely floated currency in the world and is heavily controlled for the interests of the Chinese government. This is natural (if not widely used by other countries), they obviously want to get the most benefit from their currency possible, but it comes at the expense of their trading partners. However there is an inherent lack of trust that comes from an undemocratic country that has broken treaties relatively recently (see: Hong Kong) and is very belligerent with many of their neighbors. Only a few years ago it seemed that they were content with treading a slow and peaceful path to world domination, but since Xi Jinping took over it has taken an increasingly violent turn for the worst. America has many problems, but it is still one of the most innovative and reasonably stable free countries in the world, China might be a manufacturing powerhouse but their system of governance seems to be suffocating to creative thinking. Those who trade security for freedom, deserve neither.

[Coyster]

What are your thoughts? Will China take over the world with the Digital Yuan? Or will everything else remain the same?

CBDC's are still more or less a trial/experiment/tentative idea, there's no way any country is taking over the world by launching them, since their success isn't even determined not certain yet, it could still very well be a failed experiment. The thing is everything will more likely stay the same way, in the sense that even if the CBDC's are a success, it'll be no better than the nation's Fiat currency, just a digital version.

Do you think China's Digital Currency will force other countries to launch digital currencies of their own? How long do you think the transition will happen from paper money to digital Fiat?

Most countries have in one way or another mentioned that they are working on their CBDC, thus it'll be a regular thing in the coming years. I don't think there'll be any 'transition' from paper currency to CBDC's, they'll both be used, and it's the "digital Fiat" that will be used less.

[just_Alice]

Everything will remain the same because all this digital money thing was just a way to drive attention from crypto so that the government doesn't lose control over their population IMO. What's the point in all this? Everyone is already using digital for payments, people use cards and phones, mobile apps, I barely see anyone with cash nowadays.
Yes, they might remove cash and coins from circulation, but why would that make them superior? Maybe other countries will follow the lead and do the same, though I don't see much point in it. But instead of using Yuan, they'll definitely make a digital currency of their own.

[Lorence.xD]

Let's just see what it can do and I am sure that it will be difficult because I believe that Digital Yuan is going to be an exclusive thing in China not to mention that they plan to dissolve it when you don't use it for a long time so as to keep a certain limit circulating the economy, not a good thing hodl.

[cabron]

It would depend on countries partnering with China. If they see USD  not worth anymore because its value is decreasing and the amount of percentage that China is buying from other countries like Oil, the Arab countries may change their view and want the Yuan as the base currency. In short if Yuan is used more than USD because of their one belt road then the possibility is higher.

US can not enforce other countries to use their USD if its value is decreasing at an alarming rate.

[Darker45]

China is indeed conquering the world little by little. As a matter of fact, the world in general is dependent on China to certain extent. When China, for example, was locked down because of COVID-19, the world was severely affected. And when the virus started to spread all over the globe, countries from Asia to Europe to the Americas are all flocking toward China for health equipment, from masks to testers to respirators and so on.

China's digital yuan will prove to be easily adopted by so many countries that are already being held by the scruff of their neck by China. They don't have a choice but to make the digital yuan a global currency.

[dothebeats]

It's hard to dethrone USD and EUR in their status as global reserve currencies. It's just that the world has put too much trust into these currencies that any new ones attempting to take over will not matter. With the way how China runs its economy and its domestic policies, the rest of the world would not like that to happen to the rest of them. Also, who really wants to risk a whole lot of money in hoarding a digital currency that is not really proven in the financial world anyway?

[Kittygalore]

It's hard to dethrone USD and EUR in their status as global reserve currencies. It's just that the world has put too much trust into these currencies that any new ones attempting to take over will not matter. With the way how China runs its economy and its domestic policies, the rest of the world would not like that to happen to the rest of them. Also, who really wants to risk a whole lot of money in hoarding a digital currency that is not really proven in the financial world anyway?

From a video that I have watched, the Digi Yuan will disappear if you don't spend it so it is a worthless currency to hodl and they also can track your every move so no thank you, I don't think that Digi Yuan is going to get big. And as @dothebeats says, it is difficult to dethrone USD which is the reserve currency for most countries in the world.

[goldade]

It looks like China wants to stay ahead of the game by launching its own digital currency before the rest of the world does. If it becomes the pioneer of "Central Bank Digital Currencies", it might become the largest economy in the mainstream world. This means the US Dollar will no longer be the world's reserve currency, as China gains strength with the Digital Yuan. Low fees and blazing-fast settlement speeds will make China's digital currency much more attractive than existing currencies. If the US fails to launch the "Digital Dollar" before China, it could lose its supremacy over the mainstream economy.

What are your thoughts? Will China take over the world with the Digital Yuan? Or will everything else remain the same? Do you think China's Digital Currency will force other countries to launch digital currencies of their own? How long do you think the transition will happen from paper money to digital Fiat? Your input will be greatly appreciated. Thanks in advance.

I am of the opinion that it is totally impossible for China, with the digital yuan, to take over the world. The Digital yuan, I believe, still has the same characteristics of the fiat yuan which makes it just like any other fiat currency in the world. What advantages does it have over the fiat currencies, being digital? You'd realise it has none.
Someone mentioned that it is worthless to join and it can also be tracked. That means the freedom we enjoy with bitcoin and other cryptocurrencies cannot be enjoyed with the digital yuan.

[Coyster]

That means the freedom we enjoy with bitcoin and other cryptocurrencies cannot be enjoyed with the digital yuan.

Basically, Freedom and 'control' of funds is only with Bitcoin and other decentralized cryptocurrencies, just as Fiat is manipulated and controlled by the government, it's the same way CBDC's are going to operate, the government will continually call the shots, just as they have always done with currencies they create and print as much as they want, when they want.

From a video that I have watched, the Digi Yuan will disappear if you don't spend it so it is a worthless currency to hodl...

Digital yuan and all other CBDC's that will prolly be in use in time to come is not expected to be held as people do with Bitcoin and other dex coins, it (cbdc's) doesn't have value as an investment, I think cbdc's will no doubt be a popular phenomenon in years to come, but it won't be another sort of Bitcoin in terms of usage and in every other aspect just as the govt prolly wants.

[Mauser]

It looks like China wants to stay ahead of the game by launching its own digital currency before the rest of the world does. If it becomes the pioneer of "Central Bank Digital Currencies", it might become the largest economy in the mainstream world. This means the US Dollar will no longer be the world's reserve currency, as China gains strength with the Digital Yuan. Low fees and blazing-fast settlement speeds will make China's digital currency much more attractive than existing currencies. If the US fails to launch the "Digital Dollar" before China, it could lose its supremacy over the mainstream economy.

What are your thoughts? Will China take over the world with the Digital Yuan? Or will everything else remain the same? Do you think China's Digital Currency will force other countries to launch digital currencies of their own? How long do you think the transition will happen from paper money to digital Fiat? Your input will be greatly appreciated. Thanks in advance.

At the moment I don't see any way how China can over take the world with their Digital Yuan. The problem other countries with China have is that their monetary and fiscal policies are closely controlled by the communist party. There is free market movement in place which makes it hard for investors to fully trust into the currency. The Chinese government is not interested in letting freely float their currency. As soon as something is not going according to their plan they will just start influencing the currency markets.

[ilovealtcoins]

The digital yuan is just one central bank's solution to the application of blockchain in the banking system. They will offload more steps in money management, economic management. For the Digital Yuan to reach the world, there need to be treaties between China and other countries and organizations in the world. This takes a lot of time and effort from the Chinese side.

[ninkdwi]

by all means China will continue to advance and exploit all means in order to remain in the forefront. nothing can stop it, apart from Dollar making peace with digital finance. America's conventional nature must be addressed and following the digital movement in the future that will become a leader. but if China really does become one of the mainstream with its Yuan, will the system of order and other rules change as well?
that is what we are concerned about

[Ebede]

The digital yuan won't double their money, it doesn't make sense for China citizen to put their money on digital yuan, do you heard about what's going on with chia coin in China lately? Chinese people are rushing to buy SSD and HDD to farm chia coin which is already causing scarcity on HDD and SSD in China right now, who cares about digital currencies that can double in value??

So really, don't overlook or degrade anything, they have started it, but with a gradual process they will dominate, using bitcoin as illustration today because nobody believes that bitcoin will go a long way but finally bitcoin is now taking all over the world.