China Could Curb Reliance on U.S. Dollar, Avoid Sanctions Through Digital Currency Apps

The People's Bank of China unrolled a digital currency app that will allow users in 10 of the country's major population centers to create e-wallets and make purchases using a digital version of the country's currency, the renminbi. Unlike cryptocurrencies such as Bitcoin and Ethereum, the digital form of the renminbi is controlled by the country's banking system and can be regulated through a far greater level of government oversight.

In introducing the pilot version of this digital currency system, China steps ahead of the United States when it comes to unrolling a government-backed digital form of payment. At the moment, the U.S. still finds itself in the research phase as the popularity of unregulated cryptocurrencies continues to rise.

As crypto becomes more widespread and some 39 countries enter the development, pilot, and launch phases of their digital currencies, the U.S. could see its dollar become less influential.

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