- Gordon Dumoulin
A rebalance in the global monetary system ?
Another ‘silent’ transformation which might disrupt the world of global commerce and finance. This month 100,000 residents of the beautiful city of Suzhou received a digital red envelope with 200 digital RMB (or CBDC, Central Bank Digital Currency) through a lottery by China’s central Bank, the People’s bank of China. The lucky people can spend the digital RMB in selected online e-commerce and and offline stores. This pilot project comes two months after 50,000 people in Shenzhen received a 200 digital RMB red envelope.
The global talk about digital currency is not new but it seems another race of innovation, transformation and actual implementation in the world of commerce, finance but also in society and governance, and about who is going to set standards and influence.
The digital RMB might not only leverage enormous opportunities in China but also in the recently signed RCEP with other Asian nations or the more than 100 countries being part of the Belt and Road Initiative (BRI). The digital RMB for convenience, speed and safety. Not even to speak about the benefits for the environment.
It will naturally also decrease the dependence on the “old” US dollar global dominance and monopoly.
China is moving swiftly ahead.