China's digital yuan may challenge the dollar

China is currently making great strides in implementing its central bank's national digital currency. Experts note that in 5-10 years, the Chinese digital yuan may well challenge the dominance of the dollar as the preferred currency in international trade settlements.

According to many analysts, the desire of world countries for alternative payment systems is mainly due to their desire to reduce the current (almost 100%) dependence on the US dollar. It is quite possible that in the future this dependence on the dollar will decrease to 80-85%.

In the United States, they are also thinking about introducing a digital dollar, but the United States will need about 5 more years just to plan and test a potential digital currency. At the same time, China has been preparing for the use of the digital yuan since 2014. It is obvious that at the moment the Celestial Empire occupies a leading place among all countries of the world and has outstripped all available financial technologies by a decade.

However, experts doubt that Beijing will use its «newborn» currency to save Russia under sanctions, despite some support from China in the Ukrainian conflict. Ultimately, China intends to achieve widespread recognition of the digital yuan, and turning it into a means against sanctions in the current conditions will not help in achieving this goal.