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

If successful, the PBoC(pic) could be the world’s first central bank to issue its own digital tender

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 allowed the US to impose unilateral punitive sanctions on companies via the threat of exclusion from the SWIFT dollar settlement system.