China plans to expand the use of digital yua. Zhang Ming, Vice President of the National Finance and Development Laboratory, warned that the US dollar stablecoins can create a monopoly in the global financial system, stressed that China should increase the impact of digital yu.

As we have conveyed as Kriptokoin.com, the US reported its concerns about China in 2021.

Strengthening of the US dollar stablecoins is concerned

In an article published in China’s official broadcasting bodies Study Times, Zhang said that dollar -supported stablecoins can dominate the digital economy in the field of digital economy and lead to the US as a global currency.

As the US Dollar Stablecoins find a wider usage in the digital economy, the international credit of the dollar can integrate with the virtual world and this may reinforce the global hegemony of the dollar.

Last week, US President Donald Trump said that dollar -supported stablecoins would help maintain the global leadership of the US dollar, and called for Congress to rapidly approve of Stablecoin and its market structure.

China’s digital yuan move

In response to Trump’s moves, Zhang said that China should expand the use of digital yuan.

We should rapidly expand the use of digital yuan from the level of M0 (Cash) to M1 (cash and demand deposits) and even M2 (cash, demand and term deposits). Only in this way we can increase the use of digital yua both local and internationally and strengthen the effect of RMB on the global arena.

Zhang emphasized that China should be more active in the stablecoin ecosystem, calling to increase the use of digital tokens on internet platforms.

If the use of digital tokens on internet platforms is expanded and appropriate risk management mechanisms are created, we can ensure that China’s currency RMB is more adopted in the global field. Thus, we can struggle more effectively with the threat posed by the US dollar stablecoins.

China and other countries should focus on alternative crypto currencies

In addition to China, Zhang argued that other countries should take out their national digital currencies and stablecoins.

The development of digital currencies in various forms will be much healthier than US dollar leaders in this field.

China aims to reduce its dependence on US dollar and to become a stronger position in the field of global finance by expanding the scope of digital yua and forming its own stablecoin ecosystem. This move can be a harbinger of major changes in digital money markets worldwide.