Tuesday, April 12, 2022

Hoover Inst. Warning: Digital Yuan May Undo Dollar

The Hoover Institution has published a new report entitled "Digital Currencies: The US, China, and the World at a Crossroads," arguing that the Chinese government's introduction of a digital yuan as a domestic alternative to paper currency poses a threat to the US dollar's global dominance.

The report, which had 31 contributors, was edited by Darrell Duffie and Elizabeth Economy, both senior fellows at the think tank.

Other contributors include Jared Cohen, CEO of Jigsaw; Lauren Gloudeman, director for China at Eurasia Group; Niall Ferguson, author of The Ascent of Money; Stuart Levey, CEO of Diem Networks; Sigal Mandelker, general partner at Ribbit Capital; H.R. McMaster, a former National Security Adviser under President Trump; Evan Medeiros, a former NSC staffer; and Matthew Pottinger, former Deputy National Security Adviser under Trump.

The report and the working group that produced it were launched with support of Hoover and its project on China's Global Sharp Power, co-chaired by Larry Diamond and Glenn Tiffert.

A grant from the Smith Richardson Foundation provided the principal financial support for the work.  The Atlantic Council's GeoEconomics Center shared data with the group on the status of central bank digital currency projects around the world.