I think it is a reason of btc price increase,but nobody will tel that loudly
No, I don't see a relation between the Yuan and BTC, but I believe the Yuan could become reserve currency status, if China would allow it. It's not possible at this time because it's not fully convertible.
Investor trust is the real criterion. If you think the US has printed and borrowed too much money, you haven't seen China. The huge pile of official dollar reserves is impressive, but all those dollars are backing yuans already issued, much of it at a much higher rate of yuans per dollar than today. The economy is simply flooded with money and debt. (There is a reason Chinese citizens like gold and Bitcoin!)
It's true that a lot of this capital is controlled by the state, so capital flight can be controlled more easily. But that's also part of the problem, since state capital tends to slow down growth, and growth is the only thing that can really cure financial pollution.
People like the greenback, sterling, euro and yen because they can get out of them easily. For this reason the issuers of these currencies also tend to be careful not to create too much money and debt. (The financial pollution is evident only looking across decades.) Yuan transactions are under all kinds of state control, and there's no telling when the Chinese Communist Party will decide to issue a massive amount of assets to save its own skin.
Ultimately, finance and money are a highly political issue, despite all the economic spin that the elites put out to justify this or that action. The yuan's problem is that it's dictatorship money.
It's true that a lot of this capital is controlled by the state, so capital flight can be controlled more easily. But that's also part of the problem, since state capital tends to slow down growth, and growth is the only thing that can really cure financial pollution.
People like the greenback, sterling, euro and yen because they can get out of them easily. For this reason the issuers of these currencies also tend to be careful not to create too much money and debt. (The financial pollution is evident only looking across decades.) Yuan transactions are under all kinds of state control, and there's no telling when the Chinese Communist Party will decide to issue a massive amount of assets to save its own skin.
Ultimately, finance and money are a highly political issue, despite all the economic spin that the elites put out to justify this or that action. The yuan's problem is that it's dictatorship money.
This is quite correct, but you forgot one thing: there's no large bills in Chinese currency. The Yuan would gain hugely if China could introduce 1,000 and 2,000 Yuan bills. It matters. Many people (like me) love to have banknotes which are worth a lot in their pockets. It just means the country is rich, some people need large bills.
