China considers exploring e-CNY for cross-border payments

[HAL1000]

https://ambcrypto.com/china-considers-exploring-e-cny-for-cross-border-payments/

If this does not light a fire under the rest of the worlds' arse, then I don't know what will!

[Danny]

Correct me if I'm wrong, but in order for this to be successful, other countries would have to accept the digital yuan. Suppose they would, are we then talking about a true cross-border payments system? China simply seems to be moving its monetary borders, not crossing them. Besides that, the digital yuan is a stablecoin, a digital representation of an existing traditional fiat currency, which isn't trustless. It transfers liability, not value.

In 2019 People's Bank of China Deputy Governor Li Bo interestingly said the efforts to create a digital yuan are aimed at domestic use. We now know that's only half of the truth. I bet there's more China says which is only half of the truth.

 

Edited July 17, 2021 by Danny

[peanut56]

There are countries in the world that are looking to use something besides swift which is under the control of the United States. Actors such as Russia, Iran, China, and other nations that are not favored or considered a threat to The United States, Europe, Japan, and other allies. Access to world trade for economies that aren't hindered by politics is a valuable proposition. I think and have thought for some time that a nation neutral asset will be the best option. It has been argued that the cold war started due to the USD being pegged as the international liquidity currency. Long story short China wants to take the U.S. position of world influence. This has been going on since 1990's. Time is running out and the recent pandemic has just up'ed the time frame.

[Danny]

3 minutes ago, peanut56 said:

There are countries in the world that are looking to use something besides swift which is under the control of the United States. Actors such as Russia, Iran, China, and other nations that are not favored or considered a threat to The United States, Europe, Japan, and other allies. Access to world trade for economies that aren't hindered by politics is a valuable proposition. I think and have thought for some time that a nation neutral asset will be the best option. It has been argued that the cold war started due to the USD being pegged as the international liquidity currency. Long story short China wants to take the U.S. position of world influence. This has been going on since 1990's. Time is running out and the recent pandemic has just up'ed the time frame.

Good points. They're also mentioned and explained in this video by Darren Moore: