Talk of digital yuan challenging dollar dominance misses real power shift

South China Morning PostCenter-RightEN 2 min read 100% complete by Matteo GiovanniniJanuary 25, 2026 at 10:30 PM

AI Summary

short article 2 min

The article discusses China's development and implementation of the digital yuan (e-CNY) and its implications for the global financial system. While some speculate that China aims to challenge the US dollar's dominance, the article argues that the real significance lies in the transformation of international payment infrastructure. China's e-CNY is one of the most advanced CBDC projects, processing trillions of dollars in transactions domestically. Furthermore, China is heavily involved in Project mBridge, a cross-border CBDC platform that has processed billions in transactions, with the digital yuan accounting for a significant portion. Rather than directly challenging the dollar, China is modernizing the global financial system to improve the speed, cost, and transparency of international payments.

Key Entities & Roles

Key Player Opposition Context

Washington 30% Atlantic Council ×250% Beijing 60% Project mBridge 60% e-CNY 70% United States dollar ×280% China ×490%

Keywords

digital yuan 100% cbdc 90% cross-border payments 80% us dollar dominance 70% international payments 70% financial system 60% digital currency 50% project mbridge 50% global finance 40%