If you guys pay attention to the news about the Chinese economy in the past few months, you may know the news of the country's success in launching their digital currency "Digital Yuan". and it becomes the talk of the economists that this digital currency may allows China do more influence to the world...
OBOR (One Belt One Road) is the key
I'm sure we're familiar with this term already, which is an ambitious development project worth up to $ 168 billion from China to connect its country with another countries in Asia, Africa and Europe. building roads, railways, ports in various countries is the result. ok .. if we see, this china project is very tempting, because they offer lucrative loans for countries that really need funds for their country's development. however, what should be noted is the fact that the majority of these loan recipients are countries that don't have sufficient GDP to repay these loans in future. and it could already be seen from the case of a port construction project in Sri Lanka where they had to hand over the management of a port that was built with a loan from China in 2006, because they had failed to pay debts to China.
In my opinion, the OBOR project can be used by China to impose their digital financial system to be applied to the countries that join the project. especially countries that are ultimately unable to repay these loans. and even though the country is able to pay loans from China, the opportunity for China to make the country wannna accept digital money is still big. an example is my own country "Indonesia", although in terms of GDP, Indonesia can be categorized as a country that is able to pay back this debt. However, I see that Indonesia cannot withstand China's growing influence in this country, even a few months ago the Indonesian and the Chinese Central Bank agreed to eliminate the dollar as a trading currency between the two countries. and this is very worrying for me, because Indonesia has a large trade deficit with China. So the opportunity for China to attract Indonesia to their digital currency is very big.
Covid-19 is the right moment
I don't wanna say that China who created this virus on purpose, but tbh,, it China who may have benefited from this situation. social distancing, contact prohibition, long distance transactions etc have become words that stuck in our minds nowdays. polarization or doctrine to consider a transaction system that is fast and without the need for direct contact is slowly happening. and China could just use this momentum to offer their digital money system to other countries. especially when their economic progress is predicted in the next few years to surpass the largest economy in the world today USA.
I'm not really sure what will happen if China succeeds in getting other countries involved for using this digital currency. but for sure, we have to be prepared from all possibilities ,, what do you think .... ??