The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
How will the digital yuan change the future?
On April 12 the People’s Bank of China reported that its digital currency will soon be ready for using. These days it will be in high demand as cash and credit cards could easily become transmitters of the coronavirus.
China shows the progress in adapting to the new reality and tries to benefit from it. These week Matthew Graham, the CEO of Sino Global Capital, shared the images of the beta app on Twitter.
The digital yuan is a significant step to a fully cashless digital economy. According to Zhou Xuedong, director of the People’s Bank of China, “more than 95% of daily micropayments are realized through mobile payments or Internet payments … the research and development requirements for digital currencies will become higher and higher.”
There are some advantages for consumer to use this blockchain technology such as an absolute security, a virtual zero cost and a high speed of transactions’ proceeding.
While digital dollars are not for ordinary people, but only for banks, the digital yuan can supplant the supremacy of the dollar. The Fed believes that it could undermine the international status of a dollar and impede the fiscal policy.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.