Quote from: d3nz on January 29, 2023, 02:04:58 PM

Quote from: mindrust on January 29, 2023, 12:16:55 PM

Quote from: Susano on January 24, 2023, 09:06:53 AM

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.