Chinese Researchers Give Ideas About Asian Yuan To Reduce Dependency On USD

Researchers at a Chinese state-run think tank have proposed an Asia-wide digital currency to reduce the country’s dependency on a dollar-based economy.

The opinions of scholars Liu Dongmin, Song Shuang, and Zhou Xuezhi from the Chinese Academy of Social Sciences (CASS) were published in a late September issue of the World Affairs journal, which suggested the introduction of an Asian yuan token would reduce Asia’s dependency on the USD.

The researchers stated that distributed ledger technology (DLT) would form the underpinning of the Asian token, which would be tethered to a bundle of 13 currencies comparable to similar existing and trialed central bank digital currencies (CBDCs).

According to the experts, the currencies would comprise those of all ten ASEAN member countries, as well as China’s yuan, Japan’s yen, and South Korea’s won. The researchers stated in a publication that the South China Morning Post obtained:

“More than 20 years of deepened economic integration in East Asia has laid a good foundation for regional currency cooperation. The conditions for setting up the Asian yuan have gradually formed.”

The publication is associated with China’s Foreign Affairs Department, and the academics are from the Institute of World Economics and Politics, one of several research departments of CASS, a think tank with varied links to the country’s ruling party.

The US dollar and, more lately, cryptocurrencies have become popular ways for people in South East Asia to conduct business, transfer remittances, and hedge against currency inflation.

The publication was conducted just a few weeks before a significant milestone in China’s CBDC pilot, when the Bank of China announced on October 10 that its e-CNY had transacted around $14 billion in value, or 100 billion yuan, with approximately 5.6 million merchant stores already supporting the digital yuan.

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