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South China Morning Post/Frank Tang/10-29-2020
“[Former People’s Bank of China Governor Zhou Xiaochuan] said China believed digital currencies must ‘respect exchange regimes and currency sovereignty.’ But he added a major factor in Beijing’s digital currency plan was to avoid ‘dollarisation,’ where the US dollar is used in parallel or instead of the local currency.”
USAGOLD note: Putting the currency on China’s cell phones …… Not sure how a digital yuan undermines dollar reserve sovereignty (since its usage outside China is likely to be problematic) but we pass this report along for your consideration nevertheless. The Chinese yuan is up against the dollar over the last four months as shown in the chart. If it becomes a secular trend, a strong yuan could prove beneficial to the yellow metal.
Chart courtesy of TradingView.com • • • click to enlarge
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