The Great Game: Challenging Dollar Hegemony and Reshaping Digital Trade

So, what is the deeper significance of issuing a RMB stablecoin?

According to recent reports, the U.S.-China Economic and Security Review Commission (USCC) has begun to pay attention to the rise of the RMB stablecoin and views it as a challenge to dollar hegemony. This is by no means unfounded.

1) New Path for RMB Internationalization: The traditional path of internationalization relies on trade settlement and capital account opening, which is a lengthy process. The RMB stablecoin provides a brand new, digital shortcut. It can circulate in any wallet or exchange that supports cryptocurrencies worldwide, greatly facilitating the cross-border use of RMB.

2) Avoiding the SWIFT System: In today's tense global geopolitical climate, the SWIFT system (the dollar-dominated international payment clearing system) may face the risk of being 'weaponized.' The RMB stablecoin can bypass this system, enabling peer-to-peer transactions on new digital financial infrastructure, providing trade partners with a safer and more independent option.

3) Serving the 'Belt and Road': China's strong trade network, especially with countries along the 'Belt and Road,' has a huge demand for stable and efficient cross-border payment tools. The RMB stablecoin could become the preferred tool for trade settlement, investment, and financing in these regions.