March 29, 2024

The digital currency of China will eliminate the dominance of the US dollar

The digital currency of China will eliminate the dominance of the US dollar

Following China's announcement of its own central bank digital currency (CBDC), discussions in the style of "Libra vs.of the rest of the world ”changed to“ CBDC vs Bitcoin ”.

According to Matthew Graham, CEO of Sino Global Capital, China’s goal in launching digital currency and electronic payments (DCEP) was to get rid of the hegemony of the US dollar.

"I think that it is unlikely that the true goal will be widely advertised, but there is 100% reason to believe that this ison an attempt to get rid of the hegemony of the U.S. dollar"Graham said in a recent podcast.

Tension between US and China has been growing since 2018of the year. The President of the United States has set higher tariffs and trade barriers for China to force the Asian state to change its “unfair trading practices.” However, the problem was not resolved and only worsened.

The US dollar is an important currency in the worldfunded and widely used for international payments. However, this system is gradually becoming obsolete, so China decided to abandon this currency. It seems that modern technologies, including blockchain, have become a tool for this.

This is a rather difficult task, with the solution of which only "gradual successes" are possible.

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