Since opening up in the 1980’s China became a major player in the global economy. Despite its size, the country plays a marginal role in the global financial system and relies heavily on the USD to...Show moreSince opening up in the 1980’s China became a major player in the global economy. Despite its size, the country plays a marginal role in the global financial system and relies heavily on the USD to facilitate its international trade. This heavy reliance on the US-led system is a source of strategic vulnerability. PRC authorities tried tackling this problem through the internationalization of RMB, yet failed due to domestic opposition. This paper critically assesses the mechanism of dependence ingrained in the International Monetary System and explores the potential of state cryptocurrency, the Digital RMB, to achieve Chinese strategic policy objectives. So far cryptocurrencies have not been analyzed in the geopolitical context. This article closes that gap and contributes to the important debate on the impact of emerging cryptographic technologies on the global financial system. The overall analysis suggests that utilizing Digital RMB could help the country reassert its monetary sovereignty and ensure the security of domestic financial data.Show less
