china intensifies offensive for digital Yuan: challengers of US stable coins in global payment transactions

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Von: Krypto News Österreich

Chinas Strategien zur Stärkung des digitalen Yuans im globalen Finanzmarkt China intensiviert seine Bemühungen, den digitalen Yuan (E-CNY) voranzutreiben. Das erklärte Ziel ist es, die von den USA ausgegebenen Stablecoins, die an den US-Dollar gebunden sind, im internationalen Handel herauszufordern. Laut einem Bericht eines chinesischen Medienunternehmens zeigt die Kommunistische Partei Chinas besorgte Reaktionen auf das wachsende Interesse der USA an der Entwicklung von Stablecoins. Die Herausforderungen durch US-Stablecoins Ein Bericht des stellvertretenden Direktors des National Finance and Development Laboratory (NFDL) hebt hervor, dass US-amerikanische Stablecoins das Potenzial besitzen, die globalen Finanzmärkte grundlegend zu verändern. China reagiert auf diese Herausforderung, indem …
China's strategies to strengthen digital Yuans in the global financial market China intensifies his efforts to advance the digital Yuan (e-Cny). The declared goal is to challenge the stable coins issued by the USA that are bound by the US dollar in international trade. According to a report by a Chinese media company, the China's Communist Party shows concerned reactions to the growing interest of the United States in the development of stable coins. The challenges of US stable a report by the deputy director of the National Finance and Development Laboratory (NFDL) emphasizes that American stable coins have the potential to fundamentally change the global financial markets. China reacts to this challenge by ... (Symbolbild/KNAT)

China's strategies for strengthening digital Yuans in the global financial market

China intensifies his efforts to drive the digital Yuan (e-Cny) forward. The declared goal is to challenge the stable coins issued by the USA that are bound by the US dollar in international trade. According to a report by a Chinese media company, the China's Communist Party shows concerned reactions to the growing interest of the United States in the development of stable coins.

The challenges of US stablecoins

A report by the deputy director of the National Finance and Development Laboratory (NFDL) emphasizes that American stable coins have the potential to fundamentally change the global financial markets. China reacts to this challenge by accelerating the introduction of its digital currency to equalize these stable coins in competition.

According to the report, there are three main categories of digital assets: Bitcoin, stable coins (represented by USDT and USDC) and Central Bank Digital Currency (CBDC), which is symbolized by the Chinese Renminbi. The report emphasizes that Bitcoin is not considered a real currency, but rather as a special financial asset with its own investment value. Due to its high price fluctuations, Bitcoin is classified as risky, but has shown the trend to act regardless of the US dollar.

stablecoins are characterized by the fact that they are bound by sovereign currencies, which increases their acceptance among international investors. The market capitalization of the StableCoin market has exceeded the $ 200 billion mark this year, which underlines the urgency that China has to develop its digital yuan.

Expansion of the digital Yuan beyond retail

China was the first country to be introduced to the introduction of a CBDC, but limited the use of the digital Yuan to the retail sector. In order to be able to compete with the US stable coins, the report recommends expanding the use of digital Yuans beyond consumer. An expansion of the area of ​​application from M0 (cash) to M1 (cash plus demand deposits) to M2 (cash plus all deposits) is planned.

This would enable digital Yuan to be widely accepted in both national and international markets. In addition, it is required that China has a stable digital currency and increases the use of digital tokens on online platforms. It is also pushed for the need to be able to seamlessly insert the digital Yuan in global applications.

European perspectives on digital currencies

In a similar context, the European Central Bank (ECB) addressed the need for euro stable coins. The chief economist of the ECB, Phillip Lane, emphasized in a speech that a digital euro would offer a secure and generally accepted digital payment option within the European framework. Trust in foreign providers is reduced. Lane also pointed out the dominance of tech giants such as Apple Pay and Google Pay in the field of digital payments in Europe, which in question questions the financial independence of the region of American companies.

In summary, the development of the digital Yuans shows how important it is for China to react to the growing challenges through US stable coins and to build a greater presence in the global financial system.