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.
China is probably doing well, hard to say in overall cause it's a very locked country. Personally I think that their aim should be this but at the same time they depend on exports, so, it will be hard or almost impossible to get rid of US dollar. If they make it like to hugely lessen their imports and make an ultimatum to countries to accept imports from them via yuan, then they may succeed but it will be very hard. Cryptocurrencies have nothing to do here with the fact that they want to get rid of USD. Cryptocurrencies can't help them in this task because it all depends on their politics, crypto just can be an effective tool at certain moments but not associated with this fact.