Why China Still Can’t Dethrone the Dollar—And What It Means for Crypto

For decades, analysts and politicians have speculated about the end of dollar dominance. Yet here we are—still trading, still settling, still leveraging the greenback’s deep liquidity and institutional trust. China, despite its economic ascent and digital yuan ambitions, isn’t close to changing that.

Yuan internationalization? More like ‘regional convenience.’

The dollar isn’t just a currency—it’s a system. A system backed by open capital markets, rule of law, and the world’s reserve status. China’s capital controls and geopolitical opacity work directly against that kind of global confidence.

Then there’s the digital yuan. It’s tech-smart, state-controlled, and surveillance-friendly. But it’s not decentralized, not permissionless, and sure as hell not appealing to anyone who values financial sovereignty. It doesn’t compete with crypto—it opposes it.

Meanwhile, Bitcoin and stablecoins are doing what the PBOC can’t: creating borderless, neutral, non-political money. No ministry meeting required.

So no, China won’t dethrone the dollar. But decentralized networks just might—and that’s a future worth betting on. Wall Street might not like it, but then again, when did they ever like disruption that didn’t come with a management fee?

China Cannot Dethrone the US Dollar, Says Analyst

Analyst Zongyuan Zoe Liu, a senior at the Council on Foreign Relations (CFR), explained that China cannot dethrone the dollar. She stressed that Chinese policymakers are wary of the situation, as lessons from previous currencies that tried to challenge the USD failed. The Chinese yuan will meet the same fate as internationalizing a currency needs to meet various parameters, which China lacks.

CFR’s Zongyuan Zoe Liu bluntly put it across to the Council on Foreign Relations (CFR). In addition, the Chinese yuan needs to gain trust to survive and thrive in the currency market, which it lacks. Several Western countries are wary of the yuan and the danger it brings to their economies. Promoting or using the currency helps to bolster the Communist country’s GDP, giving it power to dictate trade policies.

Not just Western countries, even nations from Asia and the Global South are skeptical of the yuan. Its neighboring country, India, is distancing itself from the yuan as it clearly knows that China’s agenda is to dethrone the dollar. India wants the dollar as the country hosts the largest IT sector outsourced from the US. Since nobody trusts or wants the Chinese yuan, China’s dream of dethroning the dollar will never turn into reality.