"Asian Yuan" to reduce dependence on US dollar

China launches "Asian Yuan" project to create the digital currency of Asia

Chinese researchers from a state-owned think tank recently developed the concept of a pan-Asian digital currency. Its introduction would reduce Asia's economic dependence on the US dollar and the United States.

The "Asian Yuan" project and China's economic strategy

The idea, devised by Chinese researchers - Liu Dongmin, Song Shuang and Zhou Xuezhi - working for the Chinese Academy of Social Sciences (CASS), was presented in the quarterly issue of the World Affairs Journal, published in late September. From the above-mentioned title, we learn about the development of the concept of "Asian yuan" by the Chinese. The main goal of this initiative is to significantly reduce Asia's dependence on the US dollar.

- Over 20 years of deepened economic integration in East Asia has laid a good foundation for regional monetary cooperation. Mutual trade relations between the countries in this region have created favorable conditions for the founding of the Asian yuan, researchers say.

The quarterly "World Affairs Journal" is closely related to the Chinese department of foreign affairs and researchers from the "Institute of World Economics and Politics". It is one of the many research units operating within the CASS, a think tank that has long cooperated with the Chinese ruling party.

The US dollar, as well as cryptocurrencies, have recently become a popular form of mutual settlement by people and companies in Southeast Asia and using them as a hedge against inflation for their national currencies.

China is the leader in the work on CBDC

The Asia digital coin project hit the media weeks before the announcement of key progress on the Chinese CBDC pilot program. The Bank of China announced on October 10 this year that e-CNY transactions totaled more than 100 billion yuan (approximately $ 14 billion). The institution also reported that as of today, around 5.6 million retail stores support digital yuan.

The Central Bank of China is also involved in the Inthanon-LionRock project, aimed at cross-border CBDC transactions. Central banks of countries such as Thailand, Hong Kong and the United Arab Emirates also participate in the project.