A man uses his cellphone as he sits next to a sculpture representing the renminbi and an abacus in Guangzhou, China, on May 14. China has launched a trial of a new state-run digital currency in four cities: Shenzhen, Suzhou, Chengdu and Xiongan. Photo: EPA-EFE A man uses his cellphone as he sits next to a sculpture representing the renminbi and an abacus in Guangzhou, China, on May 14. China has launched a trial of a new state-run digital currency in four cities: Shenzhen, Suzhou, Chengdu and Xiongan. Photo: EPA-EFE
A man uses his cellphone as he sits next to a sculpture representing the renminbi and an abacus in Guangzhou, China, on May 14. China has launched a trial of a new state-run digital currency in four cities: Shenzhen, Suzhou, Chengdu and Xiongan. Photo: EPA-EFE
Eswar Prasad
Opinion

Opinion

The View by Eswar Prasad

Why China’s digital currency won’t threaten US dollar dominance

  • China’s digital currency and its cross-border payments system will enhance the renminbi’s role as an international payments currency if the government continues to reform financial markets and remove restrictions on capital flows
  • Nevertheless, the dollar will remain the global reserve currency of choice

A man uses his cellphone as he sits next to a sculpture representing the renminbi and an abacus in Guangzhou, China, on May 14. China has launched a trial of a new state-run digital currency in four cities: Shenzhen, Suzhou, Chengdu and Xiongan. Photo: EPA-EFE A man uses his cellphone as he sits next to a sculpture representing the renminbi and an abacus in Guangzhou, China, on May 14. China has launched a trial of a new state-run digital currency in four cities: Shenzhen, Suzhou, Chengdu and Xiongan. Photo: EPA-EFE
A man uses his cellphone as he sits next to a sculpture representing the renminbi and an abacus in Guangzhou, China, on May 14. China has launched a trial of a new state-run digital currency in four cities: Shenzhen, Suzhou, Chengdu and Xiongan. Photo: EPA-EFE
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Eswar Prasad

Eswar Prasad

Eswar Prasad is Professor of Trade Policy at Cornell University’s Dyson School of Applied Economics and Management and a senior fellow at the Brookings Institution. He is the author of Gaining Currency: The Rise of the Renminbi.