Bitcoin is a minnow in the contest between titans. USD vs DCEP vs BTC
China is challenging the US. With its belt and road trade logistics global model which is in turn built upon its already established dominance in manufacturing and global mercantile trade. The next step in this program of challenging US global dominance, aside from huge military spending building up Chinas armed forces, is to take on the US global monetary hegemony.
Current US global monetary hegemony is the crown and apex of US hegemony.
US control over the international banking system delivers huge strategic power and leverage as well as massive windfall profits.
All other nations have been forced to hold USD reserves in order to be able to access the SWIFT international payments system. Being forced to hold USD enables the US to print money and fund its decades of chronic trade deficits.
Now China is advancing its project to challenge the USD based global banking system.
It has developed its CBDC Yuan, DCEP.
It has regained control over Hong Kong- the portal through which the west originally imposed monetary hegemony over China.
Russia is now dependent upon Yuan settlement of the majority of its exports- routing payments via China.
Brazil and Argentina have recently agreed to settle trade with China in Yuan.
The digital Yuan, CBDC Dcep is most likely to form the base protocol for the BRICS planned alternative to the USD...that is certainly what DCEP was designed to enable and is far in advance of any other alternative.
Saudi Arabia is expected to soon accept Yuan for oil trade, joining Iran who have sold oil to China for Yuan for decades- in blatant breach of US sanctions.
Increasingly trade partners with China are ditching USD and moving to Yuan for trade with China...and in many ways its a win win for both sides.
How many nations can afford to refuse trade with China? Few if any.
The siegniorage and interest income US gains via its global monetary hegemony is the only thing keeping USA solvent...once the universal imposition of USD global banking system reliance is broken, decline in US viability and dominance could be surprisingly rapid.
Bitcoin remains a minnow in the global power struggle for monetary hegemony.
An important and principled minnow, but size wise, a minnow nonetheless.
USD vs DCEP vs BTC