#Trump’s Digital Asset Summit Speech

China Prepares to Expand the Coverage of Digital Yuan: A Move Against US Dollar Pegged Stablecoins!
China plans to expand the use of digital yuan. Zhang Ming, Vice Chairman of the National Financial and Development Laboratory, warned that stablecoins tied to the US dollar could create a monopoly in the global financial system, emphasizing that China needs to enhance the influence of the digital yuan.
The US reported concerns about this move by China in 2021.
The strengthening of stablecoins pegged to the US dollar raises concerns.
In an article published in Study Times, which is an official publication of China, Zhang stated that dollar-backed stablecoins could dominate the field of digital economy and could strengthen the status of the dollar as the global currency of the United States.
The US dollar stablecoin, along with its increasing use in the digital economy, can be more closely integrated with the virtual world, and this can strengthen the global hegemony of the dollar.
Last week, US President Donald Trump stated that dollar-backed stablecoins would help maintain the global leadership of the US dollar and has called on Congress to promptly approve legal regulations regarding stablecoins and market structure.
China's digital yuan steps
In response to Trump's measures, Zhang stated that China needs to expand the use of digital yuan.
We must quickly expand the use of digital yuan from M0 (cash), to M1 (cash and non-interest-bearing deposits), and even to M2 (cash, non-interest-bearing deposits, and interest-bearing deposits). Only in this way can we increase the use of digital yuan both locally and internationally, and strengthen the influence of RMB in the global arena.
Zhang emphasized that China must be more active in the stablecoin ecosystem, and called for an increase in the use of digital tokens on internet platforms.
If the use of digital tokens is expanded on internet platforms and appropriate risk management mechanisms are established, we can enable greater adoption of the Chinese currency RMB at the global level. Thus, we can more effectively counter the threats posed by stablecoins indexed to the US dollar.
China and other countries must focus on alternative cryptocurrencies.
Zhang argues that besides China, other countries also need to issue their national digital currencies and stablecoins.
The development of various forms of digital currency will be much healthier than the single dominance of the US dollar in this field.
China is trying to reduce its dependence on the US dollar by expanding the reach of the digital yuan and building its own stablecoin ecosystem, as well as gaining a stronger position in the global financial arena. This move could signal a major shift in the digital currency market worldwide.
#Weekend Market Analysis