The world has witnessed a radical transformation in financial transaction concepts in recent years, with the emergence of digital currencies as one of the most prominent challenges and opportunities at the same time. They are a digital version of the country's official local currency (such as the pound, dollar, euro, and others), created and issued by the country's central bank and fully backed by the state. Their goal is to modernize the monetary system, facilitate digital transactions, and increase transparency. While countries around the world strive to keep pace with this transformation, a digital economic conflict has emerged between major powers represented by the United States of America and China. This article aims to shed light on the American decision to ban the digital dollar and its implications, against the backdrop of China's remarkable expansion in promoting the digital yuan, with a focus on the global economic impacts of this transformation and a review of the new power balances that could redraw the map of the international economy in the coming years.
