The deputy director of China’s National Laboratory of Finance and Development reportedly says that the country should expand the scope of its digital Yuan in the midst of President Trump’s embrace of cryptocurrencies.
In an opinion piece placed on the official Chinese publication The Study Times, Zhang Ming says that Stablecoins anchored to the US dollar dominate the digital currency room and further strengthen the global monetary status of the currency.
“As soon as the US Dollar Stablecoin connects the international credit of the US dollar more closely with the application scenario of the virtual world, it can enormously consolidate the hegemony of the US dollar.”
Last week, President Trump said that dollar will help stablecoins to retain the US dollar as the best Fiat currency in the world. He also called on the congress to take legislation with stablecoins and market structure.
To prevent the steps of Trump to strengthen the supremacy of the US dollar, Zhang urges his nation to cover his digital yuan in terms of assets and reach.
“Expand the substitution range of digital rmb (renminbi) from m0 (cash) to m1 (cash plus demand deposit) or even m2 (cash plus all deposits) as soon as possible. Only by upgrading the substitution we can be m1b -hivivivel Application Scenario of Digital RMB, Promote the Domestic and Foreign use of Digital RMB and Help the Internationalization of RMB. ”
He says that another planned initiative is to increase the development of Chinese Stablecoins.
“Increase the use of digital tokens on the internet platform and combine the sovereign credit of RMB better with the global application scenario of the Chinese platform. As long as the design and the risk libel are suitable, the use of digital tokens on these platforms on these platforms can extend considerably.”
According to Zhang Ming, China and other countries have to spend their own Fiat-Stunder Crypto to prevent the US from dominating the stablecoin and digital assets markets.
“The flourishing of various digital currencies is naturally better than the US dollar that monopoles the development track of digital currency.”
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Featured image: Shutterstock/Metallic Citizen/Rhjphtotoandilustration