BRICS: Crypto Revolution as Tourists in Singapore & China Pay in Yuan

• China and Singapore Collaborate to Promote Digital Yuan Payments for Tourists
• Digital Yuan Introduced as Pilot Batch by China's Central Bank
• The Initiative's Benefits
• Potential Impact on US Economy
• Enhanced Financial Cooperation through New Digital Finance Initiatives
• Increased Convenience for Tourists through Joint Pilot

China and Singapore Collaborate to Promote Digital Yuan Payments for Tourists

In a collaborative move between BRICS member China and Singapore, tourists now have the option to transact using the digital Chinese Yuan rather than the US dollar. This development aims to increase the convenience for visitors touring both China and Singapore.

Digital Yuan Introduced as Pilot Batch by China's Central Bank

The digital Yuan was introduced as a pilot batch by China's Central Bank. This new digital currency permits overseas tourists to complete transactions with it, aiming to decrease the US dollar's usage in both China and Singapore.

The Initiative's Benefits

Singapore's Central Bank, the Monetary Authority of Singapore (MAS), emphasized the enhanced convenience for tourists making purchases during their overseas travels. Just last week, MAS announced that Singapore is broadening its financial cooperation with China, a BRICS member.

Potential Impact on US Economy

Stopping the use of the dollar completely in BRICS could send shockwaves through the US, potentially resulting in financial turmoil and hyperinflation in the country. China is steadily progressing in its efforts to undermine the dominance of the US dollar in global markets. BRICS is also persuading several developing nations to trade in local currencies and sever ties with the US dollar. This shift could negatively impact the prospects and international demand for the US dollar.

Enhanced Financial Cooperation through New Digital Finance Initiatives

The new digital finance and capital markets initiatives are geared towards expanding financial cooperation with China, as stated by MAS. A primary initiative is to launch the digital Chinese Yuan as a pilot in Singapore, which MAS referred to as a Cross-border e-CNY pilot between China and Singapore.

Increased Convenience for Tourists through Joint Pilot

MAS, in conjunction with the People's Bank of China Digital Currency Institute (PBCDCI), is embarking on a pilot program that enables travellers from both countries to use the e-CNY for tourism expenses in both Singapore and China. The initiative's goal is to enhance purchase convenience for tourists during their overseas travels.

Edited by Jonathan Stoker