Will the digital yuan vanquish the dollar?
HONG KONG — For years, China’s efforts to develop a digital currency seemed intended for domestic use only. The introduction of an “e-yuan,” which is still being tested, would help China go cashless while giving the central bank tight centralized control over digital money.
However, a new development appeared on July 16: A government white paper shook up financial markets by saying China was exploring cross-border payments for the e-yuan.
The digital yuan now appears to be the latest in a decadelong series of steps to internationalize China’s currency and ultimately curb the global dominance of the dollar settlement system.
The White House, according to several news reports, regards the new Chinese e-currency as a possible effort to undermine the dollar. Meanwhile, the future of the greenback as the undisputed hegemon in global finance is being questioned as the U.S. prints money to…