: XRP, Libra, China’s CBDC- How the story could pan out https://eng.ambcrypto.com/liquidity-wars-xrp-could-support-us-dollar-as-libra-and-digital-yuan-threaten/ interesting...
"...For the better part of a decade, China has been making sure that its Renminbi has been finding payment channels beyond the Asian continent
. In 2009, China began to expand its Cross-Border trade RMB Settlement project
, focusing initially on the Hong Kong markets, as this note from the HK Monetary Authority alluded to,
” It expanded from serving personal customers to enterprises and institutions
, and transformed from just one-way repatriation of renminbi cashnotes to two-way flows of renminbi, marking a crucial step forward to the internationalisation of renminbi
This “internationalization,” of the RMB caused Hong Kong to become an “offshore renminbi centre
,” and the effect continued as the renminbi, in 2013, became the 8th most traded currency leapfrogging the Korean won [KRW] and the Hong Kong dollar [HKD]. A year later, it took the 5th spot on SWIFT’s most traded currency charts
, behind the JPY, GBP, EUR, and USD.
China’s intentions of becoming a competitor to the dollar came to the fore in 2015 when the IMF gave Renminbi the status of a “reserve currency,” and added the RMB, to its Special Drawing Rights basket
in October 2016. Notably, Stuart Oakley, global head of Flow FX at Nomura, in 2013, stated that over $5 trillion of unallocated central bank reserves were owned by China, and these could very well be in yuan.
Keep in mind that over the past few years, the Chinese hold over the global currency game increased while the United States inches away from the global leadership, owing to Donald Trump’s isolation-esque policies