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Harvard University economist Kenneth Rojoff said that the Chinese yuan will remain in operation for five years. He pointed out that President Xi Jinping’s explicit call to devalue the yuan is a turning point.
Rojoff said that investors around the world are trying hard to diversify their investments with American investors, which makes China’s move at the right time.
China’s path towards reserve status
in recent comparison With the South China Morning Post newspaperreview the main steps that must be followed by China. Beijing needs to open the government bond markets to foreign investors. You must also update the daily markets and exchange the interest rates to support the sharing of the sharing.
Rojoff explained that financial markets that are fully open to capital do not necessarily have to be harmful. The United States has kept many restrictions on foreign investment in the past, yet it remained the world’s dominant reserve currency during that period.
China should also build a financial structure independent of the SWIFT system. ذكر روجوف that modern blockchain technology can replicate current systems بتكشين modern technology can replicate current systems بتكشين بتكبفة عبفة. The cross-border payment system already serves as a basis for this effort.
around digital currencies eroding the value of the dollar
Eat rojof as well as how encrypted coins are Reorganization of currency competition. Estimated the size of the global secret economy to 20% of the total output. That is equivalent to at least 20 trillion dollars.
Cryptocurrencies, especially stable currencies, have already acquired a large share of stable, legal currencies. Previously, paper dominated this area, but now it offers digital assets that are more expensive and harder to track.
Stable currencies face regulatory reckoning
However, Rojoff cautioned that crypto-currencies will not replace the dollar in the economy. Governments have enough regulatory power and more to prevent this from happening.
Rojoff criticizes the American Genius Act as too lax in organizing the work. It remains difficult to track stable currencies once they exit the source. expect that future laws will eventually become similar to the requirements of currencies currencies currencies currencies currencies central laws.
The pace of the race for currency dominance is accelerating. Both Europe and China are building independent financial systems to limit their exposure to the United States.
