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Showing posts with label de-dollarisation. Show all posts
Showing posts with label de-dollarisation. Show all posts

Monday, April 7, 2025

De-dollarisation - Digital renminbi RMB, (数字人民币 Chinese Yuan)

 



BIG BREAKING

the People's Bank of China suddenly announced that the digital RMB (Renminbi, Chinese Yuan) cross-border settlement system will be fully connected to the ten ASEAN countries and six Middle Eastern countries, which means that 38% of the world's trade volume will bypass the SWIFT system dominated by the US dollar and directly enter the "digital RMB moment". This financial game, which The Economist called the "Bretton Woods System 2.0 Outpost Battle", is rewriting the underlying code of the global economy with blockchain technology.

While the SWIFT system is still struggling with the 3-5 day delay in cross-border payments, the digital currency bridge developed by China has compressed the clearing speed to 7 seconds. In the first test between Hong Kong and Abu Dhabi, a company paid a Middle Eastern supplier through digital RMB. The funds no longer went through six intermediary banks, but were received in real time through a distributed ledger, and the handling fee dropped by 98%. This "lightning payment" capability makes the traditional clearing system dominated by the US dollar instantly look clumsy.

What makes the West even more frightened is the technical moat of China's digital currency. The blockchain technology used by the digital RMB not only makes transactions traceable, but also automatically enforces anti-money laundering rules. In the China-Indonesia "Two Countries, Two Parks" project, Industrial Bank used digital RMB to complete the first cross-border payment, which took only 8 seconds from order confirmation to funds arrival, 100 times more efficient than traditional methods. This technical advantage has enabled 23 central banks around the world to actively join the digital currency bridge test, among which Middle Eastern energy traders have reduced settlement costs by 75%.

The deep impact of this technological revolution lies in the reconstruction of financial sovereignty. When the United States tried to sanction Iran with SWIFT, China had already built a closed loop of RMB payments in Southeast Asia. Data shows that the cross-border RMB settlement volume of ASEAN countries exceeded 5.8 trillion yuan in 2024, an increase of 120% over 2021. Six countries including Malaysia and Singapore have included RMB in their foreign exchange reserves, and Thailand has completed the first oil settlement with digital RMB. This wave of "de-dollarization" made the Bank for International Settlements exclaim: "China is defining the rules of the game in the era of digital currency."

But what really shocked the world was China's strategic layout. Digital RMB is not only a payment tool, but also a technical carrier of the "Belt and Road" strategy. In projects such as the China-Laos Railway and the Jakarta-Bandung High-Speed Railway, the digital RMB is deeply integrated with Beidou navigation and quantum communication to build a "Digital Silk Road". When European car companies use digital RMB to settle freight through the Arctic route, China is using blockchain technology to increase trade efficiency by 400%. This virtual-real strategy makes the US dollar hegemony feel a systemic threat for the first time.

Today, 87% of countries in the world have completed the adaptation of the digital RMB system, and the scale of cross-border payments has exceeded 1.2 trillion US dollars. While the United States is still debating whether digital currency threatens the status of the US dollar, China has quietly built a digital payment network covering 200 countries. This silent financial revolution is not only about monetary sovereignty, but also determines who can control the lifeline of the future global economy!


👉 This is very big news  It means De-dollarisation in a big way. It can completely re-set the world

This wave of "de-dollarization" made the Bank for International Settlements exclaim: "China is defining the rules of the game in the era of digital currency."

应对疫情下的经济衰退,中央政府调控经济的“军火库”中可动用的一项关键潜在“武器”是由中国人民银行在2019年底宣布的数字人民币Digital RMB)。作为由二十国集团(G20)成员国 ...


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Sunday, April 9, 2023

Abuse of hegemony is why de-dollarisation is trending

 US itself is accelerating the de-dollarization process

 De-Dollarization and the Fall of American Hegemony

Ever since the Fed ended its ultra-loose monetary policy and turned to a radical rate hike approach, the international financial market has been in turmoil with many currencies depreciating sharply. That has forced many countries to diversify their foreign exchange reserve assets. – AP

 

MARKET expectations for the Federal Reserve to end interest rate hikes have picked up as core inflation data in the United States has dropped and the University of Michigan’s consumer confidence index fell from 67 in February to 62 in March – yet worries abound about the outlook for the US economy.

Former US Treasury secretary Larry Summers said recently that it is too early to say that the US has shaken off the financial woes caused by its rapid interest rate hikes. The US economy is likely to experience a serious recession as a result of the recent banking crisis, with little chances of a “soft landing”. With recession expectations picking up, the factors supporting a strong US dollar are disappearing.

Ever since the Fed ended its ultra-loose monetary policy and turned to a radical rate hike approach, the international financial market has been in turmoil, with many currencies depreciating sharply. That has forced many countries to reduce holdings of US Treasuries, diversifying foreign exchange reserve assets.

In mid-march, Russia’s central bank reported that the ruble and “friendly” currencies together accounted for 52% of Russian export settlements at the end of 2022, surpassing the share of the US dollar and euro for the first time on record.

The members of Asean agreed at the end of March to strengthen the use of local currencies in the region and reduce reliance on major international currencies in cross-border trade and investment. On April 1, India and Malaysia agreed to settle trade in Indian rupees.

Data show that the proportion of US dollar reserves and assets in global central banks’ foreign exchange reserves has dropped from 65.46% in the first quarter of 2016 to 59.79% in the third quarter of 2022.

Despite its declining status, the US dollar still accounts for the largest share of global trade settlement, central banks’ foreign exchange reserves, global debt pricing, and global capital flows. However, the abuse of the US dollar hegemony has led many countries to launch a “de-dollarisation” campaign. The more the US dollar is used as a weapon, the faster it will be abandoned by other countries.

It’s unrealistic that some in the United States want to safeguard the benefits brought by the US dollar as a leading international currency, but don’t want to shoulder corresponding international responsibilities. – China Daily/Asia News Network

 Image result for Asia News Network, images/pictures

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