Reply to post: Re: And so begins the middle game

China sets out world domination plan for its digital currency

DavCrav Silver badge

Re: And so begins the middle game

"Chinas BRI is very extensive, giving them a huge market to play with this. It may well become the only digital currency that is sovereign backed and there are large parts of the world, including the oil producers, who may well have no problem using it."

No. To understand why you need to know what a global reserve currency needs to have:

1) A deep and liquid bond market, so that money can be stored in that denominated currency, backed by a central bank that one trusts not to debase the currency;

2) No capital controls of any sort.

China will need to have both of those to have a chance, and it refuses to do 2), and 1) will not be around for a while.

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