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.