China champions digi-yuan at the Beijing Olympics as countries race to launch digital currencies
![Racing for Olympic digi-gold [Aksonov/E+ via GettyImages]](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/3qJvylnKx2glLmW8r2Avgn_1_GettyImages-945141318.jpg)
On your mark, get set… Go digital. China will promote its state-run digital currency at the Winter Olympics, which kick off on Friday in Beijing. The digital yuan (#digi-yuan) is Earth’s first major central bank-backed digital currency. China started rolling it out in 2019, and even tested expiration dates to fuel spending. This month, China opened it up to all citizens and launched a digi-wallet app (it already has 261M users).
- Digi-yuan is real Chinese currency, but code instead of paper. Unlike crypto and cash, there's no anonymity with digi-yuan (China traces spending).
- Digi-snow cone: International athletes and visitors can use it to pay for transit, food, and even Great Wall tours. But US lawmakers told Olympic athletes not to use it on privacy concerns.
- Digi-Big Mac: China is pushing US companies like Nike and Visa to accept digi-yuans, and McDonald’s and Subway locations in Shanghai already do.
- Digi-competition: China says its digi wallet won’t replace popular payment apps like Alibaba-backed Alipay and Tencent’s WeChat Pay, which support digi-yuan. But those providers aren’t available at the Olympic Village, while China’s digi-wallet is (awk).
Watch the throne… Digi-yuan could threaten the US dollar’s global trade dominance and soften the effect of US sanctions, especially on China. The USD’s reliable rep has made it the world's "reserve currency" for international purchases (think: Canada buys oil from Mexico... in USD), making US sanctions a nightmare for impacted countries. Also: USD is used in 88% of foreign exchange trades. But the dollar’s share of global payments is falling as euros, yuans, and cryptos gain. And now, China is positioning the digi-yuan for international use.
The race to digi-dominance is on… 87 countries are developing digital currencies, which settle instantly, are less expensive to create, and are more accessible for people without bank accounts. Of the five biggest banking systems, the US is furthest from going digital – though it’s exploring a digital dollar. But there are concerns with digi-currencies: surveillance states like China could use them to automatically fine citizens for things like jaywalking (it’s already using facial recognition cameras to send fine notifications via text).