China’s government decided to cancel the dollar on stock transactions and will officially trade a new state digital currency.
This is the e-RMB, which is a «functional alternative to the dollar settlement system» and which can reduce the impact of sanction or a threat of exclusion from other nations, according to the Chinese Daily government newspaper.
This means that the dollar has become non-existent in Chinese trade, so it will fall sharply against the Chinese yuan. According to experts this could affect global markets.
The new digital currency will leave the dollar aside and is being tested in cities such as Shenzhen, Suzhou, Chengdu, in Xiong’an, south of Beijing, and in other areas that will be used in the Winter Olympics, to be held in 2022.
A sovereign digital currency «offers a functional alternative to the dollar settlement system» and mitigates the impact of any sanctions or threat of exclusion, both at the country and company level,» the China Daily newspaper reported.
A decline in the use of money is expected to continue amid the popularity of digital payment platforms.