Yuan Muscle Flex: China Now Powers 40% of Global Trade Settlements as Dollar Falters

The dollar’s iron grip on global trade is slipping—fast. Beijing just dropped a bombshell: the yuan now handles 40% of China’s cross-border transactions, marking the fastest currency shift since the euro’s debut.

How’d they pull it off? Petro-yuan contracts, digital currency rails, and some not-so-subtle strong-arming of commodity exporters. Meanwhile, Wall Street still thinks SWIFT is cutting-edge tech.

This isn’t just about currency wars—it’s a flashing green light for crypto adoption. When trust in fiat systems erodes, decentralized alternatives start looking real attractive real fast. Just ask the Argentinians.

Funny how ’de-dollarization’ always seems to benefit... wait for it... centralized alternatives. How very blockchain of them.

De-Dollarization: China to Punish Banks That Fail to Meet the 40% Chinese Yuan Criteria

China is taking de-dollarization seriously and is cracking the whip on banks that fail to meet the 40% Chinese yuan criteria. The increase from 25% to 40% is dubbed the Macro Prudential Assessment and banks failing to meet the criteria will receive a lower score in regulatory review, said officials close to the matter to Bloomberg.

Getting a low score WOULD also affect the bank’s future business expansion as China is tightening all loopholes. Therefore, the Chinese yuan is forging ahead to take a large share of the transactions as de-dollarization advances. The sharp increase comes as Beijing plans to internationalize the local currency for all cross-border trade and transactions.

The development gained steam after TRUMP issued sweeping tariffs on global trade affecting the normal flow of imports-export business. The move made the US dollar lose its appeal and now local currencies are in the race to the forefront. Not just the Chinese yuan, but even the euro and Japanese yen are aiming for de-dollarization to be a success.

Trump announced a 90-day pause on tariffs in April but the damage has already been done. America’s foes, allies, and enemies are all in the same boat now and China Leveraged the situation and is pushing the Chinese yuan ahead masquerading as de-dollarization. China wants the same level of domination that the US dollar enjoys in the global financial sector.