There are tell-tale signs from China's actions that we can garner to determine the real intention of the E-CNY. The real intention is not to supersede the USD because a currency per se is incapable to do that as shown by the Euro developments. Euro has not yet superseded the USD after so many years. In order to replace the USD as the reserve currency, a holistic approach must be taken. Let's not delve into that now.
Conversely, the EU and China are trying to reduce their reliance on USD because they don't want to be held hostage by a single currency. No country will want to be held hostage by a communist currency either. Therefore, it is very difficult for CNY to replace USD.
http://sg-stock.blogspot.com/2021/01/what-did-trump-do-for-us-during-his.html
What actions has China done insofar?
China has partnered with SWIFT to work on its digital currency.
https://www.coindesk.com/chinas-central-bank-is-partnering-with-swift-on-a-new-joint-venture
China has also partnered with other nations to work on cross-border payments using CBDCs.
https://finance.yahoo.com/news/central-banks-china-uae-join-155435796.html
All the Chinese actions are showing that it is trying to create a non-USD financial system so that the US cannot do any financial sanction against China. This is of great strategic importance to China, particularly in the reunification of Taiwan by military force.
The EU, US and China know that the US will lose in a South China Sea (SCS) war.
http://sg-stock.blogspot.com/2020/07/whats-my-take-on-possible-us-china.html
Therefore, the only leverage that the US can use against China is to impose a USD ban to thwart and cripple China's overseas banking and financial businesses. This is Achille's heel of China and we can see it in HK when the Chief Executive is sanctioned by the US and China cannot help her at all.
Once China has created a non-USD financial system, China will be emboldened to have a military face-off with the US in SCS.
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