Long-term impact of the digital yuan on the internationalization of the yuan

From a long-term perspective, if the digital renminbi were developed and widely used, it would be beneficial for the realization of the international renminbi strategy.

(1) The digital renminbi will increase the share of the renminbi in global payments.

The level of access to cross-border trade and investment is one of the key indicators of the global economy. The share of the use of RMB is small in the current international conception, which is incompatible with the size of our company and the size of our foreign investment capital. . According to statistics, among the earnings held by members of the International Monetary Fund (IMF) in the state in 2019, the yuan ranked fifth with a market share of 1.95%. Its global exchange rate was 4.3%, ranking fifth among the world's major stocks, with turnover of just 1.95%. Because benefit utilization has been excellent in terms of communication and method, spending patterns in global payments are unlikely to change in the long run unless they are affected by other important factors.

The most effective way to change this pattern is to use digital renminbi support to expand the renminbi's global presence, making it a tool for digital value, economy, innovation, billing, and custody. costs in trade around the world. Using blockchain technology and other research and technology, the digital renminbi can achieve the separation function. That is, to ensure that the value measures the performance of the digital renminbi, plug the renminbi across the CIPS payment border, and then cross the border using direct exchange surveys. Banks, Alipay, WeChat and other companies, the exchange, exchange and settlement of the digital renminbi will be guaranteed, and the rates, payment and operation of the renminbi can be seen. As the international community develops a level of external communication and payment based on the yuan, the retention value of the yuan and the realization of the world currency will be natural.

(2) The development of digital cross-border RMB payment will help protect the financial management of our country.

The existing cross-border payment system has an oligopoly that represents the interests of higher countries, the United States. The United States often creates sanctions for other states by prohibiting the use of procedure, turning it into an instrument of American hegemony and "long-term judgment." However, the cross-border demarcation and reconciliation between China, a developed country, still depends on the US SWIFT and CHIPS systems.

Amid global tensions in US-China relations and frequent trade wars, high hopes for the terror of the SWIFT system threaten our country's financial stability and sovereignty. In addition, SWIFT and CHIPS systems have been criticized for their high cost, although they are not profitable due to their high efficiency and neglect of technological changes and non-compliance with market rules for this type of transaction. funding.

The introduction of the digital renminbi and the establishment of cross-border competition and regulation will make SWIFT a serious competitor. Establish a cross-border renminbi withdrawal and settlement solution eliminating the third link of the existing SWIFT system, improving the efficiency of international withdrawal and compromise, and allowing all participants to maintain fairness. The requirement includes financial infrastructure in the international market. If this system is truly supported and implemented, our country will change its past position, increase the level of security of our national finances and protect financial management.

(3) The digital renminbi will help the renminbi to follow the path of development in the digital age and raise the renminbi's global voice.

In the digital age, the role of digital value will become more important, and more and more countries explore, develop and use digital value, and the global competition in the digital market will be more competitive. As a result, the promotion and promotion of the digital renminbi is associated with a wide range of economic benefits and voices in the global economy. In particular, digital benefits are still in the early stages of development, and no country has benefited from the current situation, early development and timely export of funds. The renminbi will contribute to the international reputation of the renminbi.

The faster it is put into practice, the more its technology and work experience can be received and sent to other countries, knowledge of advertising standards, digital results, navigation, root processes and application scenarios, and get the first engines. It dominates and occupies the excessive height of technology and application. However, there are issues to consider in the process of improving the digital yuan.

The US currency is not compatible with, or even against, the digital renminbi, making it difficult to recognize cross-border payments in digital renminbi. Currently, the US dollar is still a major international asset in tourism. If the digital renminbi uses the functions of cross-border payments and contracts, it will not compete with existing US payment systems, click or exchange dollars, or across the world.

To avoid the impact of the digital yuan on the US dollar, the United States, on the other hand, will take advantage of existing US payments to distract and create problems in improving the quality of our country's foreign trade. The basis of the renminbi digital cross-border payment system.

Meanwhile, the United States is still studying the spread of the digital yuan in the country to compete with the Korean digital yuan. digital yuan. Therefore, how to respond to US competition is a long-term question for the Korean Yuan.