Chin’s CBDC expansion is re -shaping the global trade network, leaving Australia at a crossroads between Beijing and Washington.
US President Donald Trump’s decision to ban the US digital dollar may shake global finance, as Western Technology Sydney an associate professor Marina Yu Zhang says that the West is already lagging behind digital currencies.
His OP-Ed On a book by a British-Swiss writer and financial economist, Zhang said that the US has been caught in political debate on digital wealth. Some MPs aim to block digital dollars due to confidential concerns, while Europe and UK are making a compromise.
Data from the US -based Atlantic Council Think Tank suggests that by September 2024, 134 countries worldwide were studying a way or other central bank digital currencies, above 35 in May 2020. Data also indicates that more than 65 countries, including India, Australia and Brazil, are in advanced stages of CBDC investigation, whether it is in development, pilot, or launching stages.
And yet, Australia still has to make any concrete plan for the central bank digital currency because the country’s economy depends on a lot of exports, especially for China.
“If China carries forward CBDC-based trade settlements, Australian exporters may face pressure to adopt Beijing’s financial infrastructure. This will raise concerns about Australia’s economic sovereignty and geopolitical existence. ,
Marina You Zhang
Zhang noted that Trump’s move could be even bigger between the US and its colleagues when talking about digital finance. The shift away from the US dollar is already gaining momentum since 2022, as many countries are now searching for multi-CBDC platforms to reduce their dependence on Western financial systems.
“How do multi-CBDC platforms provide emerging economies with an alternative to western-fetus financial systems? They streamline business and reduce the dependence on traditional financial infrastructure and reserved currencies. ,
Marina You Zhang
Zhang noted that countries like Russia and Iran were cut off from Swift in recent years, but the CBDC network “allows nations to bypass traditional financial infrastructure and reduce dependence on US dollar in cross -border trade. Is.”
While Western governments are still careful, are worried about the government and digital funds are being used to control the transaction, Australia, Zhang explains, yet the global power is ahead in digital finance without getting caught in struggles. Have to find a way of.
