Can Chinese currency yuan replace the US dollar?

[emmybd]

To earn more control over its economy, China intends on replacing the USD to yuan as the global currency. Since China's economic growth due to the cheap exports to the US, international trade and gross domestic product share of China increased to around 10%. This caused some conflict between China and the US.

With trade soaring, yuan's eminence grew and in August 2015 it became the fourth most frequented currency globally, it left behind its ranking in the 12th position within three years, surpassing Japanese yen, Canadian loonie and the Australian dollar. China has made it far easier to trade the yuan in foreign exchange markets.

It’s not the trade that makes USD the world’s reserve currency but the fact that there’s a sense of trust in the US economy. The transparency of the market and stability of its monetary policy are two important factors as well. Hence, it is not possible to eradicate the use of the dollar, even though it may be declined.

[Filo]

For the short term, it seems impossible. I guess 70 per cent of all money in circulation is the US dollar. But I am also sure that the future is China if they democratize their country.

[MrSpasybo]

If China succeeds in developing and releasing DCEP Yuan, we will see its positive effects on the Chinese economy as DCEP helps to reduce transaction costs, while also helping the government to manage financial resources better.
However, to replace USD, DCEP Yuan still has a long way to go.
First, 90% of import-export transactions are still using USD because the USD is widely accepted, simply because everyone believes in the US economy.
Second, despite its advantages in transaction time & cost, DCEP Yuan is still very difficult to access to countries around the globe. Countries will also issue their own CBDCs, with no reason for them to allow DCEP Yuan to threaten their right to manipulate their domestic economies.
Third, the US is also considering CBDC, and CBDC USD will be a better choice than DCEP Yuan.

[Galley]

I don't know how China can manage to replace the dollar with its yuan in settlements between itself and the United States of America, but it is quite capable of replacing the dollar in settlements with its partners in the Shanghai Cooperation Organization, although not immediately.

[Senin]

From the launch of the digitized yuan, China's position in the trade and financial sphere will be strengthened in the Asia-Pacific region, and then around the world.  Confidence in the dollar is gradually declining, and the Chinese economy is growing very rapidly.  However, this is a lengthy process that will progress with varying degrees of success.  The yuan, cash, non-cash or digitalized, will not be able to completely replace the dollar, but there will still be some success in this matter.

[Thymoty]

In my opinion, during this period it is very difficult for Yuan to be able to replace the role of USD in the international market, because as it is known that USD has been used by many countries for quite a long time. However, we cannot be sure of the future, it is possible that Yuan can replace USD.

[Piku]

I think there is no rush to replace the dollar. The dollar will remain popular all over the world. However, other currencies will gain popularity. However, no currency can be equivalent to Bitcoin. But any local currency can help improve Bitcoin.

[Cryptoz]

China is really going to compete everything that the uS has. They have great power and also a great chance to get it. And about the currency, they may not replace it so easily. But I can see that China is really serious about it, to be more powerful on the currency

[Gravatai]

In my opinion, it is unlikely that China will be able to make the yuan the world currency. Perhaps they will be able to increase the yuan's influence in those countries with which it has close political and trade relations, but in Europe and the United States, the yuan will never be more valuable than the currencies they use.

[tampy784t]

If the United States continues to print such huge amounts of dollars, as well as problems and riots in the country, it will weaken and lose its influence and China at that moment will be able to take over the leadership with its digital yuan

[whyrqa]

Undoubtedly, the increase in the volume of the money supply devalues ​​the dollar and inflation causes irreparable harm. But nevertheless, do not forget the fact that the dollar is an international currency and in the countries of Asia and Africa there is a huge shortage of paper money. That is, the volume of dollars that have already been printed today does not cover the demand of all users. The demand is too high. But there is no balance. Now we need to imagine what difficulties China will face if they want to replace the dollar with the yuan. One way or another, America is coping with its difficulties today.

[Fenix]

In my opinion, it is unlikely that China will be able to make the yuan the world currency. Perhaps they will be able to increase the yuan's influence in those countries with which it has close political and trade relations, but in Europe and the United States, the yuan will never be more valuable than the currencies they use.

China's economy continues to grow and grow.  In addition to the digitized yuan, the Chinese government is also creating, together with other neighboring states, a regional stablecoin that will serve the countries of the Asia-Pacific region.  It is safe to say that the dollar's circulation there will weaken considerably because of this.  The yuan will not oust the dollar from the international financial market in the near future, but it will strongly influence it.

[Shahinaz]

In my opinion, it is very difficult for Yuan to replace the role of USD in the international market, because as you know USD has been used by many countries for quite a long time.  but you can be sure that $ can be replaced by yuan. Nobody knows in the future, right???

[yurez]

I think that the United States will not allow this scenario to develop.  The United States has many supporters and allies, as well as many levers of pressure on other countries, including sanctions on those countries that want to switch to yuan payments.

[Crypto Guard]

I think this has been discussed a lot and I think digital yuan from China is still difficult to beat US dollars. because US dollars is a currency that is very stable and has indeed been accepted by all countries around the world.