![]() ![]() ![]() This title is also available as Open Access on Cambridge Core. They find that BRICS' coalitional de-dollarization initiatives have established critical infrastructure for a prospective alternative nondollar global financial system. The authors employ process tracing, content analysis, semi-structured interviews, archival research, and statistical analysis of quantitative market data to analyze BRICS activities during 2009-2021. This framework identifies the leaders and followers of the BRICS de-dollarization coalition, assesses its robustness, and discerns how BRICS mobilizes other stakeholders. To fill this gap, this study develops a 'Pathways to De-dollarization' framework and applies it to analyze the institutional and market mechanisms that BRICS countries have created at the BRICS, sub-BRICS, and BRICS Plus levels. China's digital currency usage has advanced again as 50,000 randomly selected citizens in South China's Shenzhen received a total of 10 million yuan ($1.5 million) worth of digital currency in a digital lottery that culminated on October 12.Existing scholarship has not systematically examined BRICS (Brazil-Russia-India-China-South Africa) as a rising power de-dollarization coalition, despite the group developing multiple de-dollarization initiatives to reduce currency risk and bypass US sanctions. The lucky draw took place a day after the second-largest economy in the world announced its plan to build Shenzhen, dubbed China's Silicon Valley, into a pilot demonstration zone for socialism with Chinese characteristics. ![]() It means more reforms and opening-up for the country, and promoting the Digital Currency Electronic Payment (DCEP) is one of the plans.Īccording to the Shenzhen municipal government, over 19.3 million people participated in the digital currency lucky draw. Each lucky winner received 200 yuan to spend at any one of the over 3,000 selected retail outlets in the tech hub. ![]() In terms of users and money scale, the lucky draw was the biggest move since China's central bank kicked off the pilot for the DCEP project in a couple of cities in April. The country's commerce ministry said the new money would also be tested in some scenarios during the 2022 Winter Olympics Games in Beijing and expanded to other regions as necessary.Ĭhina has been a relatively cashless society for years, with millions of mobile payment users paying with either Tencent's WeChat Pay or Alibaba's Alipay every day. Per the People's Bank of China (PBOC), banks in China handled non-cash mobile payments of $49.27 trillion in 2019, more than 25 percent from the previous year. So, why is China pushing for a digital currency, and how is it different from other electronic payment options?Ī regular consumer transaction with a digital currency would be pretty similar to an online payment transaction with Alipay or WeChat Pay. Using those electronic payment tools, one has to have a bank account with money in it, from which funds are deducted when they pay through apps. Users are not out of the traditional banking system. However, with digital currency, one does not need to have paper banknotes in a bank account somewhere. The digital currency is deposited directly into your electronic bank wallet.ĭigital currency is digitally created. It is still cash, but another type of cash. Imagine yourself living in a virtual world or a video game digital currency is just like the coins you earn and spend in the game. It has real monetary value you just can't touch it.Ĭhina's digital currency is issued by the central bank, which makes it totally different from cryptocurrencies like bitcoin and Facebook Inc's Libra. ![]()
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