Zhang Ming, the assistant director of the Chinese National Finance and Development Laboratory, expressed his proposal to increase the scope of the country’s digital yuan in a wider range of assets. This statement came up after US President Trump’s positive approach to crypto currencies. Strategic moves on the subject brought about the prediction that competition in international money markets may increase.
Effect of USD Stablecoins
Zhang Ming said that stablecoins indexed to US dollar play a decisive role in the global digital money market. According to the view, the integration of the US dollar stablecoin with the virtual world can increase the impact of US dollar on the international arena. This may lead to redistribution of power balance in the global currency system.
On the other hand, the dominance of USD in stablecoins can force other countries to integrate with crypto currencies. With the expansion of the RWA area, we can see a world in which the future countries expand their nominal currencies to crypto networks. As a matter of fact, the United States cares about this issue and strives to strengthen its very advantageous position.
Application Areas of Digital Yuan
The expert emphasized the importance of plans to make the country’s digital yuan not only M0, but also at the M1 or M2 level. With the development of domestic digital tokens, the national currency is aimed to be an alternative option in the field of global finance. This strategy aims to expand local and international uses of digital yu.
Zhang Ming; “The connection of the US dollar stablecoins with the virtual world can reinforce the dominance of the dollar.”
The authority said that the expansion of the use of digital yua will increase the chance of competition on both local and global scale.
Zhang Ming, US President Trump’s opinion that the US dollar -backed stablecoins will remain the leader of the US dollar, and the steps have been taken in this direction. Explanations point to the need to reconsider monetary policies and regulations in international markets.
Planned regulations and technological developments are considered as potential elements that can increase the use of digital yu in the national and international arena. This move is also important for the diversification of alternative digital currencies on the market.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
