China Digital yuan vs US dollars

[cabron]

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.

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[yohananaomi]

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.

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.

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 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.

[Mauser]

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.

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.

[suzanne5223]

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.

[doomloop]

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.

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.

[Hispo]

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.

[nimogsm]

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.

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.

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.

[Vishnu.Reang]

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 .

[bayudndy]

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.

[Kakmakr]

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. 

[cydrix]

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.

[ringgo96]

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.

[Alisha-k]

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

[Ludmilla_rose1995]

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.

[DrBeer]

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.

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.

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!

[mvdheuvel1983]

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.

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.

[posi]

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.

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.

[Litzki1990]

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.

[bettercrypto]

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.

[AmoreJaz]

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?