The element that China, as a sovereign nation, can force its population to adopt the digital yuan. China can also force all of its taxes to be paid in digital yuan, meaning that fees paid by multi-national companies will be converted to digital yuan. Multi-nationals will not want to hold onto these currencies any longer than necessary. And thus will force their suppliers to accept the digital currency if the supplier wants to keep selling to the muti-national. This forces a transaction base to exist. The Belt and Road initiative from China can also force many folks who do not prefer the digital yuan to accept and use the digital yuan. China does not want to be the stablecoin. There are advantages of being the reserve currency. The USA has done very well with the dollar being the reserve currency. However, the data that is available for being the coin of commerce is tremendous. The concept that the digital yuan will not be charging a 'gas' fee or bounty or other transaction friction will smooth its adoption. China can be willing to pay for the processing power, because knowing who buys what, from whom, and when is huge insight. Knowing that a disease is spreading across a country by having the data from the tests in hospitals, then seeing how the distribution of medicine is occurring based upon the commercial transaction among pharmacies, transportation, etc. These give tremendous insight to the organization that tracks all the transactions. This is the power of being the coin of commerce. I don't see how China gets disrupted from this position. The current ecosystem would trust Bitcoin more than the e-yuan. If a central bank from a hard currency country is introduces a stable-coin, that would probably gain the position of coin of savings. And the e-yuan can still remain the coin of commerce.
The element that China, as a sovereign nation, can force its population to adopt the digital yuan. China can also force all of its taxes to be paid in digital yuan, meaning that fees paid by multi-national companies will be converted to digital yuan. Multi-nationals will not want to hold onto these currencies any longer than necessary. And thus will force their suppliers to accept the digital currency if the supplier wants to keep selling to the muti-national. This forces a transaction base to exist. The Belt and Road initiative from China can also force many folks who do not prefer the digital yuan to accept and use the digital yuan. China does not want to be the stablecoin. There are advantages of being the reserve currency. The USA has done very well with the dollar being the reserve currency. However, the data that is available for being the coin of commerce is tremendous. The concept that the digital yuan will not be charging a 'gas' fee or bounty or other transaction friction will smooth its adoption. China can be willing to pay for the processing power, because knowing who buys what, from whom, and when is huge insight. Knowing that a disease is spreading across a country by having the data from the tests in hospitals, then seeing how the distribution of medicine is occurring based upon the commercial transaction among pharmacies, transportation, etc. These give tremendous insight to the organization that tracks all the transactions. This is the power of being the coin of commerce. I don't see how China gets disrupted from this position. The current ecosystem would trust Bitcoin more than the e-yuan. If a central bank from a hard currency country is introduces a stable-coin, that would probably gain the position of coin of savings. And the e-yuan can still remain the coin of commerce.