Yuan, Not Crypto, Will Challenge Dollar Within 5 Years
Harvard economist Kenneth Rogoff predicts the Chinese yuan will become a global reserve currency within five years, surpassing the influence of cryptocurrencies.Summary
Harvard economist Kenneth Rogoff argues that the Chinese yuan is poised to become a global reserve currency within five years, driven by President Xi Jinping's internationalization efforts and global demand for dollar diversification. Rogoff suggests that China must open its bond markets and develop independent financial infrastructure, such as the Cross-border Interbank Payment System, to facilitate this shift.
While acknowledging that cryptocurrencies have captured a significant share of the underground economy, Rogoff dismisses the idea that digital assets will replace the US dollar in the legal economy. He emphasizes that governments possess sufficient regulatory power to control stablecoins and prevent them from undermining sovereign currencies, noting that future regulations will likely align with central bank digital currency standards.
(Source：BeInCrypto)