China just Launched Full De-dollarization with $1.2 Trillion Dollar E-Yuan. Ends SWIFT!

China just Launched Full De-dollarization with $1.2 Trillion Dollar E-Yuan. Ends SWIFT!

China has launched the digital yuan, or e-CNY, backed by a $1.2 trillion institutional framework, aiming to reshape global finance by bypassing the U.S.-dominated SWIFT system. This digital currency facilitates transactions across 200 countries, challenging the U.S. dollar’s dominance. Since testing began, 1.8 trillion yuan ($250 billion) has been traded, with 38% of China’s global trade settled outside SWIFT by 2024. Notably, Saudi Arabia now accepts e-CNY for oil, signaling a shift from the petrodollar to a "petroyuan" system.

The digital yuan, part of the DCEP system, is programmable, allowing China to control its use, track transactions, and gain insights into global economic flows. This raises concerns about dependency, as countries adopting e-CNY trade U.S. oversight for China’s centralized control. Sanctioned nations like Russia, Iran, and Venezuela, along with others frustrated by Western banking costs, are drawn to its efficiency.

In Southeast Asia, ASEAN’s $975 billion trade with China in 2023 increasingly uses e-CNY, with countries like Indonesia and Malaysia integrating it into daily transactions. China’s Belt and Road Initiative (BRI) extends this influence, with contractors in Kenya, Laos, and Pakistan paid in e-CNY. At least 13 BRI countries are testing it for debt repayment, supported by $1.3 billion in yuan loans from 2020-2021. By 2028, digital yuan circulation is projected to reach 10 trillion yuan, potentially surpassing $1 trillion in annual BRI transactions.

U.S. sanctions, notably Russia’s 2022 SWIFT exclusion, have accelerated this shift. China’s alternative, CIPS, saw an 80% usage surge, with currency swap lines established with over 80 countries, including Brazil and Saudi Arabia. BRICS nations, now including Saudi Arabia and Egypt, are testing CBDCs led by the e-CNY to reduce dollar reliance, though integrating multiple currencies remains a challenge.

This rapid pivot, fueled by U.S. policies and China’s strategic outreach, threatens the dollar’s global role. While the dollar won’t vanish immediately, China’s financial ecosystem—blending technology, trade, and control—signals a new economic order, raising questions about whether this heralds the dollar’s decline or a more controlling global system.





#China #Trump #Dollar
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