China Accelerates Yuan Internationalization Amid Dollar Volatility

China's campaign to position the yuan as a viable alternative to the US dollar has gained momentum as global markets grapple with currency instability. The dollar's 98% loss in purchasing power since the 1970s—coupled with its weaponization through sanctions—has spurred nations to seek less volatile reserves.

Beijing capitalizes on this shift, aggressively promoting yuan-based trade settlements and currency swaps. The strategy gains urgency as Trump-era policies exacerbate dollar fluctuations, straining economies tethered to the greenback. "When trust erodes, alternatives emerge," observes a Singapore-based forex strategist, noting yuan usage in Russian commodity trades.

While no cryptocurrencies are directly mentioned, the dollar's weakening dominance could indirectly benefit decentralized assets like BTC and ETH as hedges against fiat volatility. Exchange platforms including Binance and Coinbase may see increased stablecoin demand during this transitional period.