{"id":2917,"date":"2020-11-10T04:17:16","date_gmt":"2020-11-10T04:17:16","guid":{"rendered":"https:\/\/timestampmag.com\/?p=2917"},"modified":"2020-11-11T19:54:45","modified_gmt":"2020-11-11T19:54:45","slug":"based-on-first-mover-advantage-chinas-digital-yuan-is-likely-to-dethrone-the-u-s-dollar","status":"publish","type":"post","link":"https:\/\/timestampmag.com\/2020\/11\/10\/based-on-first-mover-advantage-chinas-digital-yuan-is-likely-to-dethrone-the-u-s-dollar\/","title":{"rendered":"Based On First-Mover Advantage, China\u2019s Digital Yuan Is Likely To Dethrone The U.S Dollar"},"content":{"rendered":"

China has been doing so much when it comes to blockchain adoption and the issuance of its digital Yuan takes precedence among them. As the country looks to strengthen global financial inclusion, a lot of analysts have argued the likelihood of China\u2019s digital Yuan displacing the U.S dollar as the world\u2019s reserve currency.\u00a0<\/span><\/p>\n

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Source: <\/span><\/i>Finance Magnate<\/span><\/i><\/a><\/p>\n

According to a CNBC <\/span>report<\/span><\/a> on Nov. 2, David Roche, president and global strategist at Independent Strategy stated that China\u2019s central bank digital currency or CBDC which has already passed pilot tests could potentially knock off the U.S dollar as a reserve currency, however it would take a \u201cvery, very long time.\u201d\u00a0<\/span><\/p>\n

\u201cDethroning the dollar \u2014 which the euro tried to do, and settled at a miserable 18\u201320% of all the international things that go on \u2014 is very, very difficult. […] There is a certain amount of illusion at the moment that the yuan \u2014 which accounts for 2% of international trade settlements and even less if you come to financial investment flows \u2014 that this can take over.\u201d<\/span><\/i><\/p>\n

Worries Amid The Sinking U.S Economy<\/b><\/h2>\n

\"\"<\/p>\n

Image source: <\/span><\/i>Coingeek<\/span><\/i><\/a><\/p>\n

Amidst the rising debt structure and sinking U.S economy, Rochie has emphasized that despite the slow or negative growth experienced in the past 20 years, the dollar has maintained an \u00a0 \u201cincreasing proportion of the settlement of international trade and an even bigger proportion of financial reserves”<\/span><\/p>\n

Rochie\u2019s comment on the state of a U.S issued CDBC has been centered on the <\/span>comment previously<\/span><\/a> made by Jerome Powell \u2014 the U.S. Federal Reserve\u2019s chairman who declared in October that the U.S government was less concerned about <\/span>China\u2019s <\/span><\/a>first-mover advantage in the issuance of CBDC. Powell further reiterated that the U.S is more concerned about getting it right rather than being the first.\u00a0<\/span><\/p>\n

Industry Experts Echo Sentiments on Digital Yuan<\/b><\/h2>\n

The U.S dollar as a reserve currency of the world has always been a focal point when it comes to matters of international trade settlement and the basis of exchange, which makes it an object of concern with every policy coming out of the States.\u00a0<\/span><\/p>\n

In October 2019, former chair of the Commodity Futures Trading Commission, Christopher Giancarlo made an <\/span>argument<\/span><\/a> of the likelihood of the U.S dollar losing its dominance if its digital version does not launch soon. Other countries are already experimenting with their CBDC and this could pose a threat to the U.S dominance, Giancarlo stated.<\/span><\/p>\n

Anthony Pompliano, a co-founder of major <\/span>cryptocurrency<\/span><\/a> firm Morgan Creek Digital, aligned his view in the same light, reiterating that the <\/span>U.S. is going to fall<\/span><\/a> \u201creally far behind China\u201d if the country keeps delaying its digital dollar initiative. The aspect to look out for is how these will compete with the more established <\/span>cryptocurrencies<\/span><\/a> in the short term.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

China has been doing so much when it comes to blockchain adoption and the issuance of its digital Yuan takes precedence among them. As the country looks to strengthen global financial inclusion, a lot of analysts have argued the likelihood of China\u2019s digital Yuan displacing the U.S dollar as the world\u2019s reserve currency.\u00a0 Source: Finance […]<\/p>\n","protected":false},"author":17,"featured_media":2640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[30,2,409,4,400,410],"_links":{"self":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts\/2917"}],"collection":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/comments?post=2917"}],"version-history":[{"count":4,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts\/2917\/revisions"}],"predecessor-version":[{"id":2924,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts\/2917\/revisions\/2924"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/media\/2640"}],"wp:attachment":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/media?parent=2917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/categories?post=2917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/tags?post=2917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}