The Digital Yuan is a threat to the dollar.

A few days ago I made a publication where I indicated that several countries in the world are interested in launching their own cryptocurrency or digital currency, among those countries is China who has already launched a test of the Digital Yuan in its domestic market, this digital currency is backed by the Central Bank of China.

Starting with this news of the implementation of the Digital Yuan in China, it is already generating repercussions in the international economic community, so much so that one of the first countries to pronounce itself on this issue was the United States through the administration of President Biden, as they fear that the impact that this digital currency may generate in the world market may affect the dollar. Some of the members of the administration presided over by the President of the United States have expressed their concern about the possibility that the Digital Yuan may compete with the dollar as the dominant currency.

According to information from an anonymous source, officials from the Treasury Department, the State Department, the Pentagon and the National Security Council are joining efforts to understand the possible implications that this situation could generate for their country. Likewise, officials estimate that this impact, if it occurs, will be long term and therefore they are developing strategies to minimize the impact on their economy.

On the other hand, the Chinese Central Bank, once the Digital Yuan test is done and it generates the expected results, they aspire to be the first large Central Bank to issue a digital currency, they are even contemplating to give a greater activity to the Digital Yuan for the beginning of the Winter Olympic Games to be held in China in February 2022, with the aim of giving a greater international projection to this digital currency. Although many aspects of the Digital Yuan are currently unknown, it is already generating its impact, what is certain is that China has established a joint venture with the SWIFT system which serves as a connection bridge to make most of the international transfers that they perform.

In conclusion, cryptocurrencies or digital currencies are the future of the world economy because they have generated positive impacts that are seen with good eyes by the great world powers, which is why many countries are already working on the creation of their digital currencies as Venezuela and China have done, although as indicated in the post previously published on this topic (Countries are beginning to develop their own cryptocurrencies.) the main difference that exists is the decentralization that cryptocurrencies have against the centralization that these digital currencies have because they are controlled by governments or institutions.