Thanks, I’ll check that out.
China is already the new super power . The US is going down by design.
If china uses its digital yuan for the belt and road initiative (Belt and Road Initiative - Wikipedia),
this would drastically increase the use of their digital currency. 60-70% of the world’s population are part of the BRI.
They could even trick/force whole nations into their digital money system by debt trapping them.
And it sure looks like they will do exactly that:
“The digital yuan, due to its purported benefits like faster and cheaper transactions, can give China the opportunity to reduce the cost and increase the ease of conducting cross-border trade along the BRI. Using its digital currency to settle cross-border transactions over the current payment clearing systems would enable China to bypass the existing U.S.-centric financial system while conducting business. This would immunize China’s business along the BRI against U.S. sanctions—significantly benefiting China’s geopolitical position, as well as its trade.”
“As part of the initiative, China is promoting the use of the yuan for cross-border trade.”
“China’s extensive aid program can be seen as a way of building soft power around the world. Through the BRI, China is creating a scenario in which several weak economies are growing increasingly dependent on it for loans. China is also accused of creating a debt trap for countries along the BRI, with Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro, Pakistan, and Tajikistan falling fast into the trap.70”
"China can assert its influence over countries with mounting Chinese debt by pushing them to accumulate the Chinese digital yuan reserves to pay back the loans. China can even provide countries with concessions on loans to promote its digital yuan. If the cost of switching to China’s digital yuan is low, countries will see no benefit in continuing their trade transactions with China in dollars. Using digital yuan as the currency of invoice to disburse loans can make these transactions more transparent and manageable. "
“For countries to readily adopt the digital yuan, China will have to first build the infrastructure and second, incentivize countries to use the digital yuan for trade. Both these scenarios are highly plausible considering China’s growing soft power in countries indebted to it and its motivations to build alternate infrastructure for trade not dominated by the dollar.”
Thanks !!