Ever since China confirmed that its digital currency would roll out fairly soon, there have been numerous questions regarding its viability. As one would have expected, the digital yuan should form a stiff competitor for the US Dollar, albeit nothing ever comes easy.
It is a well-known fact that the US and China are not on the best of terms.
China’s Digital Currency will Pose a Threat
As you can imagine, that is bound to have some very interesting financial consequences.
The digital currency being developed by the Chinese government is an official attempt to dethrone the US Dollar.
For those unaware, the entire world’s economy hinges on the greenback, either for better or worse.
All of these developments do not come as a surprise to those who kept close taps on China’s financial policy over the years.
Attempts to make the RMB more used on an international scale have fallen short, thus a new solution needs to be found.
This new digital currency has very high expectations to live up to.
Whether it can achieve those levels, is very difficult to predict.
Due to ongoing political tensions between China and the US, it seems unlikely that any “change” will go over smoothly.
For the rest of the world, CHina’s digital currency may create intriguing precedents.