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.

Get 30% off with our ads free Premium Plan!

Monthly Plan

RM13.90/month
RM9.73 only

Billed as RM9.73 for the 1st month then RM13.90 thereafters.

Annual Plan

RM12.33/month
RM8.63/month

Billed as RM103.60 for the 1st year then RM148 thereafters.

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

Metal markets rush to adjust to clampdown
Apple’s US$1bil outlay may be a fleeting win
Nestl� Malaysia expands green programme to Sabah with partners
Google offers to loosen search agreements
Tether sees US$10bil in net profits for 2024
Qualcomm wins key chips trial against Arm
Higher gold prices expected to boost Malaysia’s exports
Demand for property to remain steady in 2025
Painting a brighter future
China property flare-ups resurface as crisis enters its fifth year

Others Also Read