Deripaska warns digital yuan could threaten the dollar

Russian billionaire Oleg Deripaska believes that the People’s Bank of China’s issuance of a digital currency will undermine the position of the US dollar in the global financial system. He wrote in his Telegram channel.

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The businessman commented on the Bloomberg article about American officials actively studying the consequences of introducing the digital yuan.

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“The U.S. Treasury, State Department, Pentagon and SNB are now with all their ‘expert’ chatter trying to understand the consequences of introducing the digital yuan for the American economy, and indeed the political system. The digital yuan could become the first real threat to the dollar’s dominant position in decades,” Deripaska said.

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In his view, four years after the introduction of the CBDC from the PRC, U.S. authorities will essentially have to forget about the possibility of unilateral financial sanctions.

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“Hegemony from the American Treasury will no longer be as total. This will lead to unpleasant consequences for the entire U.S. financial system with its sovereignty, including problems financing their enormous budget deficit.”

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Deripaska added that the launch of the digital yuan is scheduled for February 2022, while the Bank of Russia plans only to begin testing of the digital ruble.

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The billionaire called the digitization of financial transactions ‘irreversible’:

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“Many traditional commercial banks face a real threat of being left out of the new digital economy. Their place will be gladly taken by a new fintech that is more agile and quicker to respond to the challenges of the times.”

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For more on the digital yuan, read the ForkLog piece:

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How China has managed to lead in monetary innovation thanks to the digital yuan (DCEP)

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As reported, the BSN plans to complete integration of the digital yuan with 30 public blockchains in 2021.

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