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Cornell Professor Says The Digital Yuan Is Not A Threat To The U.S. Dollar, But It May Become Popular
Summary: A professor of Trade Policy at Cornell University and a senior fellow at the Brookings Institution, Eswar Prasad, said that China's digital yuan project will not threaten the value of the U.S. dollar in an opinion piece published on Project Syndicate on Friday, August 28. He went on to say that the digital yuan will help raise ...
A professor of Trade Policy at Cornell University and a senior fellow at the Brookings Institution, Eswar Prasad, said that China's digital yuan project will not threaten the value of the U.S. dollar in an opinion piece published on Project Syndicate on Friday, August 28.
He went on to say that the digital yuan will help raise Chinese currency's global relevance if the government reforms the financial market and removes restrictions on capital flows.
Prasad argued that China's Cross-Border Interbank Payment System is a more significant development which allows the nation and its trading partners to avoid the Western SWIFT international payments system and US financial sanctions.
As that system is used more often, smaller nations may begin pricing products in yuan. If that happened, the digital yuan could be linked with the new payments system helping to digitize cross-border payments.
However, Prasad believes that the yuan becoming a world reserve currency will not happen without national economic policy changes which he does not think is likely.
By Emily Mason
Tags: China,Digital Yuan,International Payments
Link: Cornell Professor Says The Digital Yuan Is Not A Threat To The U.S. Dollar, But It May Become Popular [Copy]
