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<p><strong>China is pushing the digital yuan to become the number one currency in ASEAN trade.</strong></p>
<h2 style="text-align: center;" id="guanxi-as-a-pioneer-for-asean-trade-integration">Guanxi as a Pioneer for ASEAN Trade Integration</h2>
<p>The autonomous region of Guanxi is <a href="https://news.bitcoin.com/chinese-autonomous-region-of-guanxi-to-adopt-digital-yuan-in-push-for-asean-trade-integration/" target="_blank" rel="noopener">playing a pivotal role</a> in spearheading the adoption of the digital yuan in ASEAN trade. Guanxi&#8217;s strategic location and strong trade ties with ASEAN countries make it an ideal testing ground for integrating the digital yuan into cross-border transactions.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">According to Bank of China data, more than 5.6 million stores nationwide had accepted payments in digital yuan as of last August, with total transactions exceeding 100 billion yuan (US$14.5 billion). 4/4 <a href="https://t.co/HNyj4LV1N8">pic.twitter.com/HNyj4LV1N8</a></p>
<p>&mdash; Dongsheng News (@DongshengNews) <a href="https://twitter.com/DongshengNews/status/1659287836565073930?ref_src=twsrc%5Etfw">May 18, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="advancing-the-digital-yuan-8217-s-influence">Advancing the Digital Yuan&#8217;s Influence</h2>
<p>China&#8217;s goal is to establish the digital yuan as a widely used currency in ASEAN trade settlements. By progressively expanding the digital yuan&#8217;s adoption and demonstrating its reliability and efficiency, China aims to gain the confidence of ASEAN nations in using the digital currency.</p>
<h2 style="text-align: center;" id="undermining-the-dominance-of-the-dollar">Undermining the Dominance of the Dollar</h2>
<p>China&#8217;s efforts to expand the digital yuan&#8217;s usage in ASEAN trade are part of a broader strategy to reduce reliance on the U.S. dollar. By providing an alternative digital payment system, China aims to counter the influence of the dollar and mitigate the impact of dollar-based sanctions.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">The Battle for Supremacy: Will the <a href="https://twitter.com/hashtag/BRICS?src=hash&amp;ref_src=twsrc%5Etfw">#BRICS</a> Currency Topple the <a href="https://twitter.com/hashtag/USdollar?src=hash&amp;ref_src=twsrc%5Etfw">#USdollar</a> Hegemony?<a href="https://t.co/Tm6ZogUpez">https://t.co/Tm6ZogUpez</a><a href="https://twitter.com/hashtag/DigitalYuan?src=hash&amp;ref_src=twsrc%5Etfw">#DigitalYuan</a> <a href="https://twitter.com/hashtag/DigitalChina?src=hash&amp;ref_src=twsrc%5Etfw">#DigitalChina</a> <a href="https://twitter.com/hashtag/XiJinping?src=hash&amp;ref_src=twsrc%5Etfw">#XiJinping</a> <a href="https://twitter.com/hashtag/USD?src=hash&amp;ref_src=twsrc%5Etfw">#USD</a> <a href="https://twitter.com/hashtag/USA?src=hash&amp;ref_src=twsrc%5Etfw">#USA</a> <a href="https://twitter.com/hashtag/America?src=hash&amp;ref_src=twsrc%5Etfw">#America</a> <a href="https://twitter.com/hashtag/UnitedStates?src=hash&amp;ref_src=twsrc%5Etfw">#UnitedStates</a> <a href="https://twitter.com/hashtag/UnitedStatesOfAmerica?src=hash&amp;ref_src=twsrc%5Etfw">#UnitedStatesOfAmerica</a> <a href="https://twitter.com/hashtag/CBDC?src=hash&amp;ref_src=twsrc%5Etfw">#CBDC</a> <a href="https://twitter.com/hashtag/CentralBankDigitalCurrency?src=hash&amp;ref_src=twsrc%5Etfw">#CentralBankDigitalCurrency</a> <a href="https://twitter.com/hashtag/PoliticalEconomy?src=hash&amp;ref_src=twsrc%5Etfw">#PoliticalEconomy</a> <a href="https://twitter.com/hashtag/Economics?src=hash&amp;ref_src=twsrc%5Etfw">#Economics</a> <a href="https://twitter.com/hashtag/Economy?src=hash&amp;ref_src=twsrc%5Etfw">#Economy</a>… <a href="https://t.co/SO5V60tDBQ">pic.twitter.com/SO5V60tDBQ</a></p>
<p>&mdash; Herbert R. Sim (@HerbertRSim) <a href="https://twitter.com/HerbertRSim/status/1657937402990858243?ref_src=twsrc%5Etfw">May 15, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="expanding-the-digital-yuan-s-influence">Expanding The Digital Yuan’s Influence</h2>
<p>China&#8217;s push for the digital yuan in ASEAN trade integration indicates its strategic approach to establishing the digital currency&#8217;s prominence. This gradual progression highlights China&#8217;s focus on expanding the digital yuan&#8217;s influence in the ASEAN region.</p>
<h2 style="text-align: center;" id="implications-for-the-brics-currency">Implications for the BRICS Currency</h2>
<p>However, there might be other intentions behind the aggressive expansion. The digital yuan needs widespread acceptance from several trading partners before it can be considered as the currency of the BRICS bloc.<br />
While the digital yuan&#8217;s usage in ASEAN trade might be a stepping stone, it sets the stage for potential consideration as the currency of the BRICS bloc. China&#8217;s focus on ASEAN trade integration can also serve as a foundation for broader discussions among the BRICS nations about the digital yuan&#8217;s <a href="https://walletinvestor.com/magazine/brazil-support-the-creation-of-a-new-brics-currency" target="_blank" rel="noopener">role in the bloc</a>.</p>
<h2 style="text-align: center;" id="brics-currency-expansion">BRICS Currency Expansion</h2>
<p>As China works towards expanding the digital yuan&#8217;s influence in ASEAN trade, it also considers the inclusion of new countries into the BRICS bloc. The potential addition of Iran, Argentina, Saudi Arabia, Turkey, and Egypt as BRICS members could further strengthen the case for the digital yuan as the bloc&#8217;s currency.</p>
<h2 style="text-align: center;" id="conclusion">Conclusion</h2>
<p>China&#8217;s strategic approach of pushing the digital yuan in ASEAN trade integration showcases its commitment to establishing the digital currency&#8217;s credibility and usage before potentially considering it as the currency of the BRICS bloc. By gradually expanding the digital yuan&#8217;s influence in ASEAN trade, China might be preparing for broader discussions on the future of the digital yuan within the BRICS framework.</p>

Chinese Digital Yuan: A Potential BRICS Currency?

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