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conceptual image Chinese stock exchange with digital currency, devaluation of bitcoin or growth of Chinese e-rmb

Will China’s Digital Yuan Displace the US Dollar in Global Trade?

The U.S. dollar became the world’s reserve currency because it was stable and easily transferable. It also enabled the U.S. to penalize sponsors of terrorism and genocide

China has just launched its Digital Currency Electronic Payment System, called variously the electronic yuan or electronic renminbi (abbreviated e-CNY or e-RMB). It will likely thwart Alipay and WeChat Pay’s dominance in China’s financial tech market and allow the government to track almost all financial transactions in real time. There are, of course, international implications to China being the first country to roll out a digital currency backed by the central bank. Can the Digital Yuan Compete with the Dollar for Global Dominance? Some analysts now see China’s move to a digital currency based on blockchain technology as intended to displace the dollar. Right now, eighty-eight percent of global trade interactions are in U.S. dollars, followed by the euro, and…

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New Yuan digital currency of china on red economy graph chart

China Sharply Reins in Big Tech Amid All-Digital Currency Rollout

Ant Group must turn over its vast customer database to the government in exchange for the easing of strict regulations

Earlier, we looked at what China’s new digital yuan, also called Digital Currency Electronics Payment or e-CNY, will mean for Chinese citizens. The rollout may relate to billionaire e-commerce founder Jack Ma’s critiques of China’s regulators and subsequent (temporary) disappearance. Also to the subsequent denial of his Ant Group’s billion-dollar initial public offering on the Shanghai index. Since then, the Chinese government has cracked down on several Big Tech companies while promoting the digital yuan. How China is rapidly reining in its Big Tech industries Chinese media have been promoting the second annual Double Five (i.e., May 5) Shopping Festival in Shanghai. This month-long state-organized shopping festival is part of “National Consumption Promotion Month.” The first Consumption Month festival, held…

Businessman hand holding tablet and Yuan currency sign on digital map backgroung.Chinese Yuan digital currency and circuit background.Technology digital Financial and china cryptocurrency concept.
Businessman hand holding tablet and Yuan currency sign on digital map backgroung.Chinese Yuan digital currency and circuit background.Technology digital Financial and china cryptocurrency concept.

Why China Is Making a Bold Gamble With Digital Currency

“Controllable anonymity” means that all transactions between individuals are visible to the People’s Bank and trackable by the Chinese government

Last week, China announced the national rollout of the electronic yuan, a plan in the works since 2014. The e-CNY* or Digital Currency Electronics Payment (DCEP) was piloted last year in four major Chinese cities: The digital yuan resides in cyberspace, available on the owner’s mobile phone — or on a card for the less tech-savvy — and spending it doesn’t strictly require an online connection. It appears on a screen with a silhouette of Mao Zedong, looking just like the paper money. In tests in recent months, more than 100,000 people in China have downloaded a mobile-phone app from the central bank enabling them to spend small government handouts of digital cash with merchants, including Chinese outlets of Starbucks…