The Chinese authorities are actively working on the digitalization of the national currency. At the moment, nothing can stop the launch of the digital yuan. Some analysts suppose that this action may strengthen the yuan’s position against other major currencies.
In fact, the Chinese currency cannot even take the second place in the basket of major currencies. A share of the Chinese yuan in the currency reserves of all IMF’s members is just 2.02%. At the same time, reserves held in the US dollar total 61.99%, the euro’s share is 20.05%, the Japanese yen’s share amounts to 5.70%, and the British pound’s share is 4.43%. That is why the Chinese government is carrying out such a large-scale financial reform aimed at putting the yuan at the top. The most important event is the official introduction of the digital national currency. The new yuan will be issued by the People’s Bank of China. Following China’s example, the central banks of Sweden, South Korea, and even the US have also supported the introduction of the digital currencies. Notably, until recently, the Federal Reserve has been an ardent opponent of digitalization.
China has surpassed other countries in this sphere. Thus, the yuan has all chances to go beyond its rivals. China began to develop the digital currency in 2014 and the new payment system is supposed to be based on the new currency.
