BEIJING -- China is forecast to overtake the U.S. as the world's largest economy as early as 2030 and is striving to raise the international stature of its currency to a level befitting the country's economic might. As part of its effort, China is stepping up its promotion of central bank digital currencies.
Sun Lijian, a professor of finance at China's Fudan University, contends that the dollar is losing its ability to serve as an anchor for other currencies because of its volatility in the currency market. In a recent interview with The Nikkei, Sun said, "If the dollar alone cannot perform the role of an anchor, the renminbi (yuan), along with the Japanese yen, can also assume the responsibility as a stabilizing factor in the international currency system." But he also emphasized that he does not believe that the yuan will replace the dollar as the predominant world currency.