US Government Concerned China’s Digital Yuan Could Threaten Dollar as the World’s Dominant Reserve Currency – Regulation Bitcoin News

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The U.S. government is reportedly concerned that China’s digital yuan could threaten the U.S. dollar’s status as the world’s dominant reserve currency. Officials at the Treasury, State Department, Pentagon, and National Security Council are increasing their efforts to understand the implications of China’s central bank digital currency.

Digital Yuan Could Be a Threat to US Dollar

The U.S. government is reportedly increasing scrutiny of China’s digital yuan. Some government officials are concerned that the Chinese central bank digital currency “could kick off a long-term bid to topple the dollar as the world’s dominant reserve currency,” Bloomberg reported Sunday, citing people familiar with the matter.

Officials at the Treasury, State Department, Pentagon, and National Security Council are strengthening their efforts to understand the potential implications of China’s digital currency. Particularly, they want to understand how the digital yuan will be distributed and whether it could be used to evade U.S. sanctions.

China has been actively testing its digital currency backed by the central bank, People’s Bank of China (PBOC). Its rapid progress has renewed efforts in the U.S. to create a digital dollar, the publication conveyed, adding that the Biden administration is not currently planning to take any…

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