The concerns I have with a Digital Yuan are linked to China’s One Belt, One Road initiative with the adding of a digital layer to that effort. IF China is able

The concerns I have with a Digital Yuan are linked to China’s One Belt, One Road initiative with the adding of a digital layer to that effort. IF China is able to successfully export its Super-platforms into the developing world it will provide the means thru which it could supplant the US Dollar with the Digital Yuan as the primary means of exchange with low friction switching costs. At the moment, Zipf’s Law still applies with the US Dollar still the dominant currency used with the Euro a distant 2nd. China’s Yuan is still low single digit %. But this could change rapidly if China is able to successfully push their domestic super-platforms onto the developing world thru a strategy of One Belt, One Road debt trap diplomacy combined with offering their fellow authoritarians ‘moderator’ within the Chinese ‘administrator’ surveillance framework, and offering users purchasing power stability. While the decision isn’t binary, if the CCP had to choose between investing in a counter to the US military’s trillion dollar super-carrier battle group sunk cost or adding a billion developing world users for Chinese super-platforms I think the choice is simple. The latter is cheaper, and ultimately pays for the former. My thinking is the threat today is low, but the vulnerability looking out a decade+ is extremely high.