One of the largest economies on Earth is preparing to shake up the world of finance with the first-of-its kind release of a central bank-backed digital currency. Before long, governments around the world may be using this new digital money to back their transactions in lieu of physical currency.
If you think this imminent digital currency shakeup is going to be coming out of the U.S. Treasury, you haven’t been paying attention.
By all metrics, Beijing’s impending digital yuan is years if not decades ahead of any dollar-based central digital currency, and the implications of the digital yuan’s success are staggering for the international fiscal world.
Fintech innovation expert Richard Turrin makes the significance of a digital yuan clear in his book, Cashless: China’s Digital Currency Revolution. In an interview with CNBC, Turrin was confident that we are indeed approaching a rollback on how dependent the world has become on the U.S. dollar for international transactions of all stripes.
“If we go about five to 10 years out, yes, the digital yuan can play a significant role in reducing the dollar’s usage in international trade. You’re going to see the digital yuan slowly supplant the dollar.”