Promoting Digital RMB to Circumvent US Sanctions

August 19, 2020 Updated: August 19, 2020

US President Trump called it terrible that the CCP is damaging freedom of the press in Hong Kong. It has also been reported that the US is looking to step up economic action against China. Media reports that the U.S. may kick the CCP out of the US dollar payment system SWIFT, accelerating the US-China financial decoupling.

Trump said: “I hate to see what happened in Hong Kong because freedom is a great thing.”

Current affairs critic Yang Feng said: “(Because) the timing is not in Beijing’s hands. It is up to when the U.S. wants to do this, kicking China out of the U.S. dollar settlement system.”

The United States has imposed sanctions on Iran, North Korea, and Cuba, cutting off their foreign exchange deposits. China’s four major state-owned banks, which account for 50% of China’s foreign dollar transactions, may become targets of sanctions. This has made the CCP authorities extremely worried.

On Aug. 14, the Ministry of Commerce of the CCP expanded the scale of digital RMB pilot projects to 28 urban areas in China, covering 400 million people. However, digital RMB is not Bitcoin decentralization, but currency centralization – every transaction made can be traced by the authorities.