China Digital yuan vs US dollars - page 3.

electronicash

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Quote from: dothebeats on January 27, 2023, 01:26:04 PM

Unless the majority of the world abandons the US Dollar, China will still be dependent in using it for foreign trades. Only a few select countries are willing to trade goods in exchange for CNY, and the rest of the world still deals with USD a lot. Even if they were the first one to introduce the digitization of their currency, most of the success of their CBDC will still be dependent on the amount of people willing to use and receive it. They can force their people to use it as long as they like, but outside of China, it'll be a hard task to do that since there really isn't any incentive to use digital Yuan just yet.

both countries need the market with each other, and they both dependent on each other despite the rivalry. even when countries are already dedollarizing, they will still need to trade with the US since most of the product buyers are Americans.

and also the CBDC of China seems to be flipping, many Chinese are not using it but thier alternatives like the alipay and wechat.

Tytanowy Janusz

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Quote from: Susano on January 24, 2023, 05:06:53 AM

China is sprinting its testing on the digital yuan. It will not take too long before the digital Yuan is executed and it believes China will become less independent of the US Dollar.

So you think that China is dependant on US dollar because it does not have digital Yuan?

It is dependent on US dollar because every other country that china wants to deal with does not accept a currency that is not widely accepted, does not have huge liquidity, assets are not evaluated in it and is from a country that does not respect private property and freedom. Digital Yuan does not address any of this issues.

dothebeats

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Unless the majority of the world abandons the US Dollar, China will still be dependent in using it for foreign trades. Only a few select countries are willing to trade goods in exchange for CNY, and the rest of the world still deals with USD a lot. Even if they were the first one to introduce the digitization of their currency, most of the success of their CBDC will still be dependent on the amount of people willing to use and receive it. They can force their people to use it as long as they like, but outside of China, it'll be a hard task to do that since there really isn't any incentive to use digital Yuan just yet.

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Quote from: Susano on January 24, 2023, 05:06:53 AM

China is sprinting its testing on the digital yuan. It will not take too long before the digital Yuan is executed and it believes China will become less independent of the US Dollar.

Is this a good thing or will China become even more economically powerful and therefore a threat? https://www.worldcoinindex.com/nl/news/chinese-central-bank-deputy-governor-wants-china-to-accelerate-pboc-rollout
And We already know that China is aiming for global domination specially in terms of economy, and I am sure they are seeing this digital yuan as a possible many tools they can use to entice more countries to go away from the domination of the US Dollar in international commerce. However, many countries right now are also starting to get wary of the intention of China, at least in part this is exposed with the pandemic. Many countries are now starting to resist the influence of China. Many are now seeing that China can be a trap. Personally, I don't see China to be the one to dominate of the vacuum that will be left by USA in the global commerce, that position is reserved for another (still emerging) entity.

Both are fiat and both are centralized and both can be easily manipulated by their government also both of the currencies are under the control of the central bank. But regarding the US dollar, we have an open economic system where they allow people to use and invest in any asset they want including cryptocurrencies on the other hand in China Yuan they have a communist country and they won't allow any other asset like bitcoin to take the place of their fiat which can have a bad effect in long term and that's why between these two I would go for US dollar.

SquallLeonhart

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Quote from: Susano on January 24, 2023, 05:06:53 AM

many countries right now are also starting to get wary of the intention of China, at least in part this is exposed with the pandemic. Many countries are now starting to resist the influence of China. Many are now seeing that China can be a trap. Personally, I don't see China to be the one to dominate of the vacuum that will be left by USA in the global commerce, that position is reserved for another (still emerging) entity.

China is already "less dependent on us dollar" if they want to, they just do not want to because it is smart to own that much dollar both in cash and in debt. It allows them to leverage their future expenses, for every dollar they are owed, they could spend many times of that today, saying they will pay later when the debt they are owed to is paid.

This is why I do not believe the whole discussion about them not wanting to use dollars anymore, they are very much in love with it because the whole world uses it, and they could own literally nation sized lands in all of Africa by using dollars, they are literally growing their landsize by just purchasing using dollars.

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In China, it has been exactly a year since they officially launched their digital yuan into circulation. Is it still being tested there? China may get some benefits in connection with the launch of its digital yuan, but this is only an improved form of government cashless payments. These advantages must be consolidated in practice. But so far, we do not see feedback from the Chinese or from other countries about the circulation of the digital yuan. So far, this is unlikely to have any noticeable impact on the dollar. In addition, the US is also going to issue its own digital dollar.
On the other hand, China is largely dependent on the technologies of the United States and the West. Therefore, it is hardly possible to talk about some kind of his dominance over the dollar.

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Quote from: Susano on January 24, 2023, 05:06:53 AM

China is sprinting its testing on the digital yuan. It will not take too long before the digital Yuan is executed and it believes China will become less independent of the US Dollar.

That will happen in your dreams, China can never be independent of the USD, they can only try more. This digital currency of a thing is not as important as many of you are viewing it, it will benefit more Chinese and will add only a few extra to Chain. The country cannot function in isolation, and there is no way Yuan can be trusted like the USD, at least not for decades when it comes to stability and reality. There must be a currency that fits a lot of characters that are dependable and peggable for the global economy. That is what the USD is doing right now, and it's doing it well, only that the Chinese are only looking for ways to defeat it, but such would not happen in just a day.

And as long as Chinese people are also moving around the world and transact globally, the USD will always be needed since it penetrates deeper.

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We don't get to decide which country dominates the financial scene and as for other countries being wary of the intention of China, it's not any different from that of other countries which want more power.
Reaching a moral stand on which is a better option is not an easy decision to make.

Personally I don't see how a CBDC would help accelerate China's bid for more dominance, they would get early bird privileges but other nations would be able to successfully replicate it in their own States and create a more decentralized network.

Susano

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China is sprinting its testing on the digital yuan. It will not take too long before the digital Yuan is executed and it believes China will become less independent of the US Dollar.

Is this a good thing or will China become even more economically powerful and therefore a threat? https://www.worldcoinindex.com/nl/news/chinese-central-bank-deputy-governor-wants-china-to-accelerate-pboc-rollout
And We already know that China is aiming for global domination specially in terms of economy, and I am sure they are seeing this digital yuan as a possible many tools they can use to entice more countries to go away from the domination of the US Dollar in international commerce. However, many countries right now are also starting to get wary of the intention of China, at least in part this is exposed with the pandemic. Many countries are now starting to resist the influence of China. Many are now seeing that China can be a trap. Personally, I don't see China to be the one to dominate of the vacuum that will be left by USA in the global commerce, that position is reserved for another (still emerging) entity.

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