Has China’s de-dollarization been set back?
Saudi Arabia has withdrawn from China’s cross-border digital currency platform, #mBridge , that involved the country. However, Saudi officials say they left after completing the planned proof of concept, so it should not be interpreted as pressure from the United States or as a wholesale shift toward the U.S. dollar system.
mBridge itself is still being advanced with continued participation from China, Hong Kong, Thailand, the UAE, and others. As a result, Saudi Arabia’s withdrawal has limited real impact on the platform’s operations.
Countries do want to reduce reliance on the U.S. dollar payment system, but at the same time they are unwilling to fully join a financial framework led by China. Therefore, future competition may not be simply “the U.S. dollar vs. the renminbi,” but rather: who can build a global financial infrastructure that more countries will “choose to use.” This competition between finance and geopolitics is far from over. $BTC #HODL
Saudi Arabia has withdrawn from China’s cross-border digital currency platform, #mBridge , that involved the country. However, Saudi officials say they left after completing the planned proof of concept, so it should not be interpreted as pressure from the United States or as a wholesale shift toward the U.S. dollar system.
mBridge itself is still being advanced with continued participation from China, Hong Kong, Thailand, the UAE, and others. As a result, Saudi Arabia’s withdrawal has limited real impact on the platform’s operations.
Countries do want to reduce reliance on the U.S. dollar payment system, but at the same time they are unwilling to fully join a financial framework led by China. Therefore, future competition may not be simply “the U.S. dollar vs. the renminbi,” but rather: who can build a global financial infrastructure that more countries will “choose to use.” This competition between finance and geopolitics is far from over. $BTC #HODL
