Could China’s Digital Currency Unseat the Dollar?

[tower9]

No, the Digital Yuan will not unseat the USD in the foreseeable future. But what it can do is build up enough usage that it can protect China from being sanctioned by the US.

The US in the past two decades have become filled with hubris and has weaponized the US dollar to the point that other countries have lost trust in the US as the guarantor of the world financial system and this will damage US interests in the long run. But the dominance of the dollar will be retained at least for the next 2-3 decades.

 

[Han Patriot]

No, the Digital Yuan will not unseat the USD in the foreseeable future. But what it can do is build up enough usage that it can protect China from being sanctioned by the US.

The US in the past two decades have become filled with hubris and has weaponized the US dollar to the point that other countries have lost trust in the US as the guarantor of the world financial system and this will damage US interests in the long run. But the dominance of the dollar will be retained at least for the next 2-3 decades.

I agree. It will provide a sanctiona free alternative and ensure US behaves. That's why in a market economy, having options is good. Monopolies tend to be corrupted overtime. Now US need to compete for influence, they will be nicer, long arm jurisdiction will be reduced.

I don't think China wants to destroy the US system per se, they want to provide alternatives and create a multopolar world, the Europeans have the same aspiration.