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Zhang Ming, Deputy Director of the National Finance and Development Laboratory of China, advocated for expanding the digital yuan’s use across a broader asset spectrum. His remarks came in response to the positive approach of former U.S. President Trump towards cryptocurrencies. Strategic moves in this context suggest an impending increase in competition in international monetary markets.
Impact of USD Stablecoins
Zhang Ming emphasized that USD-indexed stablecoins play a pivotal role in the global digital currency landscape. He believes that the integration of USD stablecoins with the virtual world can enhance the dollar’s influence internationally. This could lead to a redistribution of power dynamics within the global monetary system.
Moreover, the dominance of the USD in stablecoins may compel other nations to integrate cryptocurrencies. With the expansion of the RWA sector, we may witness a future where countries extend their fiat currencies into crypto networks. The U.S. is taking this matter seriously and is striving to bolster its advantageous position.
Applications of the Digital Yuan
The expert highlighted the importance of plans to utilize the digital yuan not only as a cash substitute but also at M1 and M2 levels. The development of domestic digital tokens aims to establish the national currency as an alternative option in global finance. This strategy seeks to broaden the local and international applications of the digital yuan.
Zhang Ming stated that the expansion of the digital yuan’s application would enhance competitiveness on both local and global scales. He also mentioned Trump’s view that dollar-backed stablecoins would help maintain the dollar’s leadership and that steps are being taken in this direction. These statements underscore the necessity for reassessment of monetary policies and regulations in international markets.
Proposed regulations and technological advancements are seen as potential factors that could increase the digital yuan’s usage both nationally and internationally. This initiative is also significant for diversifying alternative digital currencies in the market.
