China's Digital Yuan in Cross-Border Finance: A Game Changer. 🇨🇳

- China is making significant strides in integrating the digital yuan into cross-border transactions, aiming to enhance its global financial influence.

- This move goes beyond a simple digital upgrade, representing a strategic shift in the era of digital finance and aligning with BRICS consortium goals to reduce reliance on the US dollar.

The Strategy Behind the Digital Push

- The digital yuan has already gained a foothold in China and is now expanding into cross-border transactions.

- PetroChina's recent use of the digital yuan for oil transactions highlights the strategic depth of China's plan.

- This expansion is part of a broader blueprint to strengthen the BRICS alliance's position in the global financial system.

China’s Expansion of Digital Yuan’s Domain

- The Bank of China's deputy chief executive, Xing Guiwei, is actively promoting the international use of the digital yuan.

- Cross-border projects were initiated in 2020, and significant progress has been made in broadening the digital yuan's applications.

- China's Central Bank has reported a substantial increase in digital yuan transactions, indicating growing momentum.

- With trillions of yuan already being exchanged digitally, the digital yuan's move into cross-border finance is a significant step toward reshaping its global role.

- This venture has the potential to recalibrate international trade mechanisms and is a bold stride toward a potential financial paradigm shift.

- As the digital yuan ventures beyond China, it carries China's vision for a reimagined global financial landscape.

China's ambition to reshape global finance with the digital yuan is not just a digital upgrade; it represents a strategic pivot and aligns with the BRICS consortium's objectives. This move has the potential to redefine international trade and finance, and as it gains momentum, the global financial landscape may undergo a significant transformation.

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China does not want the #Yuan to be used to buy $USDT in order to obtain #FIAT currencies other than the Yuan.

In short, China does not want to lose #control over its currency: legitimate but very difficult.
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The Central Bank of Russia announced that the Chinese yuan is Russia's main foreign exchange currency.

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Digital tokens to transform Hong Kong's financial industry are chosen by the city

Using digital tokens to streamline conventional assets has the full support of the Hong Kong financial industry. Project Ensemble Sandbox was inaugurated in a hall on the 56th floor of the International Finance Centre by the Hong Kong Monetary Authority (HKMA), the de facto central bank of Hong Kong.

"Tokenization has the potential to make financial transactions more efficient, more transparent and less costly," says Eddie Yue, chief executive of the HKMA, who also coined the motto "Tokenising Together" for the organization.

To create a vibrant and creative digital asset ecosystem in Hong Kong, the launch "marks a significant milestone in our journey," according to Yue.

In order to gauge the efficacy of the technology, financial institutions will investigate possible transactions using tokenized assets. Tokenized bond and fund transactions are a key feature of the pilot's several topics.

Improved efficiency and reduced transaction costs are anticipated outcomes of the invention. Notably, Standard Chartered, the Bank of China, and HSBC are all involved in the new financial orientation of Hong Kong. Hong Kong dollar notes are issued by all three of these institutions. Ant Digital, a unit of Alibaba Group Holding, and Microsoft are also taking part.

The asset liquidity assistance may be handled by HashKey Group. In the event that the tokenization initiative is successful, the HKMA will be ready to launch a CBDC.

"Tokenizing something is to provide a way of measuring the value in this world," Yat Siu, co-founder and chairman of Animoca Brands, said.

According to Siu, China's desire to wean itself off the dollar is reflected in Hong Kong's shift toward tokenization. China thinks the dollar is a weapon used against nations that don't follow the Western system, he says.

He asserts that the dollar's supremacy in digital banking is being challenged by Chinese authorities who are using Hong Kong as a strategic front.

#HongKong #Yuan $BTC