US Sees Digital Yuan as a Potential Threat
According to the publication, the administration of US President Joe Biden is carefully studying China's plans for the digital yuan. Some of the staff fear that he could kickstart "a long-term effort to topple the dollar as the world's dominant reserve currency".
Officials from the US Treasury Department, State Department, Pentagon and National Security Council are stepping up their efforts to understand the possible implications of the digital yuan implementation. In particular, they want to explore ways of spreading the currency and the possibility of circumventing US sanctions with its help. Washington considers it particularly important what the consequences for the global financial system may manifest in the long term.
The People's Bank of China is one of several global regulators developing their own digital currency. The central banks of Sweden, France, Russia and several other countries are also doing this. The digital currency is expected to be similar in functionality to non-cash money, but formally it will be the third type of means of payment in addition to the existing cash and non-cash funds.
At the same time, the financial authorities of the countries developing their digital currency emphasize that it will have nothing to do with cryptocurrency, since it will be issued by a single emission center in the person of the Central Bank - while the main feature of cryptocurrency is decentralization.