The Caribbean used to be called “America’s backyard” now it’s China’s so don’t be surprised when they use the #digitalyuan!
“The dollar is the largest currency used in trade there’s no question about it, but what we can question is whether the dollar is the easiest currency for developing currencies to access? The clear answer to that is no!”
And that results in this situation:
“Many developing countries will be happy to use the digital yuan if it’s cheap and effective because they’re simply cut off from the US dollar.”
Great to work again with Cyrus Janssen on a story that until recently didn’t get much press. If you haven’t seen Cyrus’ YouTube Channel its a must visit! (Cyrus Janssen “Real Talk China”)
Banks call it “derisking” meaning that they reduce their risk if they simply pull out of a country. That sounds good for the bank, but what about the country left behind?
What neither Cyrus nor I could possibly know is that this story exploded this month!
China signed a cooperation agreement with Cuba on December 25th, and even Barbados dropping ties to the Queen got tied up with China!
I understand if some are skeptical about China’s influence so far from home so read this:
“As of December 2021, 19 out of 33 countries in Latin America and the Caribbean had signed up for the Belt and Road. In addition to Cuba, they include Jamaica and six other island states in the Caribbean; El Salvador, Costa Rica and Panama in Central America; and Venezuela, Guyana, Suriname, Ecuador, Peru, Bolivia, Chile and Uruguay in South America.”
0:00 – Video Preview
0:57 – Intro to Richard Turrin and China Digital Currency
2:28 – How Digital Currency is Helping Caribbean Nations
4:37 – How Asia is Leading the Digital Currency Movement
6:31 – Why are American Banks leaving the Caribbean?
8:20 – Why Nations Will Use China’s Digital RMB instead of USD
11:53 – How Digital Currency can help prevent Money Laundering
14:23 – How Global Trade will increase the need for Digital RMB
16:46 – Does America Want to Help Developing Nations?
20:36 – Why Digital Currency Technology is the Future
Let me close with this soundbite that opens the video:
“What CBDCs will be famous for or remembered for is bringing financial inclusion to unbanked populations.”
This statement is true for countries as well as individuals.
As long as Caribbean countries remain cut-off from the dollar and face hardships importing goods, of which many are Made In China, how could they not use digital yuan if it simply works?
I find this story sad.
Thank you again Cyrus!