✅130 countries are actively developing CBDCs, covering 98% of global GDP.
💱The UAE made its first cross-border payment using its digital currency, the D-Dirham.
🌍China and the UAE's use of CBDCs promotes trade in local currencies and weakens the reliance on the US dollar.
🌐The shift towards CBDCs represents a move from unipolarity to multipolarity in the global economy.
💲The US dollar's status as the global reserve currency is being challenged by the rise of CBDCs.
What is a CBDC?
—A CBDC is a digital form of a country's currency that is issued and regulated by the central bank. It serves as a legal tender and is backed by the government.
Why are countries developing CBDCs?
—Countries are developing CBDCs to modernize their financial systems, enhance transaction efficiency, reduce costs, and potentially challenge the dominance of existing global reserve currencies.
What is D-dollarization?
—D-dollarization refers to the decreasing use of the US dollar in international transactions and the increasing use of digital currencies, such as CBDCs, for cross-border payments.
How does the UAE-China partnership impact the US dollar?
—The UAE and China's use of CBDCs for cross-border payments reduces the need for US dollars in international trade, challenging the currency's dominance and potentially weakening its value.
How does the rise of CBDCs impact the global economy?
—The rise of CBDCs represents a shift from a unipolar global economy, where the US dollar dominated, to a multipolar economy where multiple currencies, including digital currencies, play significant roles.
00:00A record number of 130 countries are developing Central Bank Digital Currencies (CBDCs) covering 98% of global GDP.
02:51The UAE has successfully made its first cross-border payment using its digital currency, the D-Dirham.
05:06China and the UAE's use of CBDCs promotes trade in local currencies and weakens the reliance on the US dollar.
07:20The shift towards CBDCs represents a move from unipolarity to multipolarity in the global economy.
08:45The rise of CBDCs challenges the dominance of the US dollar as the global reserve currency.
