To replace USD with RMB is a Chinese dream. There is nothing wrong with that. But, every dreamer should check the facts on the ground, which might well be a rude awakening. 

In 2019, USD accounts for 61.8% of official sector reserves world-wide. RMB takes just 1.9%. This is a gap too wide to bridge.

Unlike foreign exchange markets, official sector reserves indicate which currency the world bets for or against over the long term. The world is expected to go on betting for USD. 

Digitalization of RMB will not make a difference. Confidence, or a lack of confidence, in RMB hinges on political and economic reality, not a dreamed-up golden empire. 

Seriously, neither the pandemic nor the Washington chaos have changed this fact: China needs America as an importer as much as an investor. Meanwhile, America can afford to say no to China. After all, the American navy is practically in control of the world’ s sea routes.

China knows this too well. So does America.

--- by Lingyang Jiang