CNBC's Dain Evans interviews Neha Narula for "China’s digital yuan could pose challenges to the U.S. dollar"

China’s digital yuan could pose challenges to the U.S. dollar

PUBLISHED SAT, JUL 24 20219:00 AM EDT UPDATED SUN, JUL 25 20215:11 AM EDT Dain Evans@DAINALEXEVANS

China is beating the U.S. when it comes to innovation in online money, posing challenges to the U.S. dollar’s status as the de facto monetary reserve. Nearly 80 countries — including China and the U.S. — are in the process of developing a CBDC, or Central Bank Digital Currency. It’s a form of money that’s regulated but exists entirely online. China has already launched its digital yuan to more than a million Chinese citizens, while the U.S. is still largely focused on research.

The two groups tasked with this research in the U.S., MIT’s Digital Currency Initiative and the Federal Reserve Bank of Boston, are parsing out what a digital currency might look like for Americans. Privacy is a major concern, so researchers and analysts are observing China’s digital yuan rollout.