The People’s Bank of China announced the full integration of its Renminbi Digital cross-border settlement system with 10 ASEAN countries and six Middle Eastern countries.
This move allows approximately 38% of global trade to be conducted directly in the digital yuan, bypassing the US dollar-dominated SWIFT system.
The Economist magazine called this event “the first battle for Bretton Woods 2.0” – the rebuilding of the global economic infrastructure using blockchain technology.
While SWIFT still faces 3-5 day delays in international payments, China’s digital currency bridge has reduced settlement times to 7 seconds.
23 central banks around the world have joined the test of this “digital currency bridge,” and Middle Eastern energy traders have reduced their settlement costs by 75%.
The profound impact of this development is a rethinking of financial sovereignty.
While the US used SWIFT to impose sanctions on countries (such as Iran), China created a vicious cycle of yuan payments in Southeast Asia.
In 2024, the volume of yuan transactions in ASEAN countries reached 5.8 trillion yuan (a 120% increase from 2021).
Six countries, including Malaysia and Singapore, added yuan to their foreign exchange reserves, and Thailand made its first oil payment in the digital yuan. The Bank for International Settlements (BIS) declared, “China is defining the rules of the digital currency era. ”
The digital yuan is not just a means of payment, but a strategic tool for the Belt and Road Initiative.
This digital transformation has, for the first time, systematically threatened the hegemony of the US dollar.
Today, 87% of countries worldwide have implemented the digital yuan system, and the volume of international payments using it has exceeded $1.2 trillion.
While the US is still debating the risks associated with digital currency, China has expanded its digital payment network to 200 countries.
This quiet financial revolution is no longer just a question of money, but also of control over the future of the global economy.
