China’s nascent digital yuan is set to challenge the dollar’s domination of international trade settlements in the next decade, according to Richard Turrin, author of “Cashless: China’s Digital Currency Revolution.”
“Remember, China is the largest trading country and you’re going to see digital yuan slowly supplant the dollar when buying things from China,” Turrin told CNBC’s “Squawk Box Asia” on Monday.
“If we go about five to 10 years out, yes the digital yuan can play a significant role in reducing the dollar’s usage in international trade,” said Turrin, a former banker who has also worked in fintech.
The drive toward alternative payment systems is likely to come from a desire by nations to reduce their current, “mostly 100%” reliance on the dollar, he said.
“What you’re going to see in the future is a rollback, a risk management exercise that seeks to slowly and maybe just slightly reduce the dependence on dollar, from 100% down to 80%, 85%,” he said.
Beijing, however, is unlikely to use the digital yuan to aid Moscow in bypassing the crippling…
