China's digital currency could be 'functional alternative' to dollar settlement


PETALING JAYA: As China's central bank advances to the next stage of testing its sovereign digital currency, observers say its successful development and implementation could wean the country of its dependence on the US dollar settlement system.

In an April 24 article, China Daily said the reliance on US dollar settlement allows the US to impose unilateral punitive sanctions on companies via the threat of exclusion from the SWIFT dollar settlement system. However, "DCEP" (digital currency and electronic payment) as part of the further development of an RMB-based trade settlement system could serve to counter what it alleges is the weaponisation of the US dollar as a tool to enforce foreign policy.

"A sovereign digital currency provides a functional alternative to the dollar settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company level.

"It may also facilitate integration into globally traded currency markets with a reduced risk of politically inspired disruption," it said.

Subscribe now for a chance to win your dream holiday!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

How the collection of taxes can help the needy
Five decades of innovation and inspired creations
KTMB’s new Asean Express to complement port operations
Blackstone’s Gray expects ‘new cycle’ for real estate market
Sik Cheong to expand vegetable oils business post-IPO
Mall operators remain cautious
Public-private pact the right way to go
Builders on track for continuing, solid growth with project flows
BAM: Branding is key to standing out
EEA 2024 to kick off with Global Navigator Series in Kuala Lumpur

Others Also Read