{"id":33025,"date":"2020-12-08T14:43:50","date_gmt":"2020-12-08T12:43:50","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=33025"},"modified":"2025-08-28T11:42:55","modified_gmt":"2025-08-28T08:42:55","slug":"saxo-banks-shocking-predictions-the-digital-yuan-will-unlock-chinas-capital-markets","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/saxo-banks-shocking-predictions-the-digital-yuan-will-unlock-chinas-capital-markets\/","title":{"rendered":"Saxo Bank&#8217;s &#8216;Shocking Predictions&#8217;: the digital yuan will unlock China&#8217;s capital markets"},"content":{"rendered":"<p>The digital version of the yuan (DCEP) on the blockchain will in 2021 trigger tectonic shifts in global financial flows, opening China&#8217;s domestic capital markets to foreign investors. This view was voiced by Saxo Bank analysts in the annual &#8216;Shocking Predictions&#8217;.<!--more--><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">After an outrageous year, it\u2019s time for some Outrageous Predictions. Watch <a href=\"https:\/\/twitter.com\/Steen_Jakobsen?ref_src=twsrc%5Etfw\">@Steen_Jakobsen<\/a> introduce Saxo\u2019s contrarian market forecasts for 2021. <a href=\"https:\/\/t.co\/7lHw3BcTti\">https:\/\/t.co\/7lHw3BcTti<\/a><\/p>\n<p>Trading financial instruments carries risks. Always ensure that you understand these risks before trading. <a href=\"https:\/\/t.co\/cTE5XS5A0t\">pic.twitter.com\/cTE5XS5A0t<\/a><\/p>\n<p>\u2014 Saxo Bank (@saxobank) <a href=\"https:\/\/twitter.com\/saxobank\/status\/1336210547751202818?ref_src=twsrc%5Etfw\">December 8, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>They contend that a natural step by the People\u2019s Bank of China for the digital currency would be to open the country\u2019s capital-account, which currently has tight restrictions and makes the yuan virtually unavailable outside the mainland.<\/p>\n<blockquote>\n<p>\u201cProviding foreigners with full access to Chinese capital markets will reduce the main barrier that concerns foreign investors in using the yuan for trade and investment: its liquidity and direct access to their investments within the country,\u201d \u2014 noted the bank\u2019s analysts.<\/p>\n<\/blockquote>\n<p>In addition, the stability of the Chinese currency, the traceability and control provided by blockchain technology will virtually eliminate the risk of capital flight or illicit transfers from the country, they added.<\/p>\n<p>In the analysts\u2019 view, this idea fits well within China\u2019s proclaimed <a href=\"https:\/\/www.reuters.com\/article\/china-economy-transformation-explainer-idUSKBN2600B5\" target=\"_blank\" rel=\"noopener noreferrer\">\u0441\u0442\u0440\u0430\u0442\u0435\u0433\u0438\u0438 \u0434\u0432\u043e\u0439\u043d\u043e\u0433\u043e \u043e\u0431\u0440\u0430\u0449\u0435\u043d\u0438\u044f<\/a> (Dual Circulation), increasing transparency domestically while expanding the yuan&#8217;s use worldwide as a credible alternative to the US dollar for transactions.<\/p>\n<p>Opening capital accounts and creating a currency competing with the dollar for reserve status would help boost domestic consumption, finance a completely new pension system in China, and deepen the country\u2019s capital markets, the Saxo Bank analysts concluded.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"DhpuLuaE4e\">\n<p><a href=\"https:\/\/forklog.com\/en\/news\/how-chinas-digital-yuan-dcep-put-it-at-the-forefront-of-monetary-innovation\">How China managed to become a leader in monetary innovation thanks to the digital yuan (DCEP)<\/a><\/p>\n<\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"\u00ab\u041a\u0430\u043a \u041a\u0438\u0442\u0430\u044e \u0443\u0434\u0430\u043b\u043e\u0441\u044c \u0432\u044b\u0439\u0442\u0438 \u0432 \u043b\u0438\u0434\u0435\u0440\u044b \u043c\u043e\u043d\u0435\u0442\u0430\u0440\u043d\u044b\u0445 \u0438\u043d\u043d\u043e\u0432\u0430\u0446\u0438\u0439 \u0431\u043b\u0430\u0433\u043e\u0434\u0430\u0440\u044f \u0446\u0438\u0444\u0440\u043e\u0432\u043e\u043c\u0443 \u044e\u0430\u043d\u044e (DCEP)\u00bb \u2014 ForkLog\" src=\"https:\/\/forklog.com\/exclusive\/kak-kitayu-udalos-vyjti-v-lidery-monetarnyh-innovatsij-blagodarya-tsifrovomu-yuanyu-dcep\/embed#?secret=vJ2OYY7mIX#?secret=DhpuLuaE4e\" data-secret=\"DhpuLuaE4e\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>Analysts describe their traditional forecasts for the coming year as \u201cincredible\u201d and \u201coutrageous\u201d that do not reflect their official stance. Among other \u201cshocking\u201d predictions for 2021, they list Amazon\u2019s move of its headquarters to Cyprus, and a rise in corporate defaults due to successful COVID-19 vaccination.<\/p>\n<p>Earlier in 2020, the &#8220;Shocking Predictions&#8221; forecast the Asian Infrastructure Investment Bank issuing a new blockchain-based reserve asset named ADR and a waning interest in AI developments.<\/p>\n<p>Subscribe to Forklog\u2019s channel on <a href=\"https:\/\/www.youtube.com\/channel\/UCC9FnXTC8_ENzaNSO5cHQ6g\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"> YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The digital version of the yuan (DCEP) on the blockchain will in 2021 trigger tectonic shifts in global financial flows, opening China&#8217;s domestic capital markets to foreign investors. This view was voiced by Saxo Bank analysts in the annual &#8216;Shocking Predictions&#8217;.<\/p>\n","protected":false},"author":1,"featured_media":33026,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[2050],"class_list":["post-33025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-saxo-bank"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/33025","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=33025"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/33025\/revisions"}],"predecessor-version":[{"id":33027,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/33025\/revisions\/33027"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/33026"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=33025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=33025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=33025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}