BRICS member China teamed up with Singapore to allow tourists the option to pay in the digital Chinese Yuan and not the US dollar. The move is to enhance convenience for tourists who visit both Singapore and China for vacations. China’s Central Bank launched the digital Yuan as a pilot batch and now allows overseas travelers to pay through it. The move will also reduce the usage of the US dollar for transactions in both China and Singapore by tourists.
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“This will enhance convenience for travelers when making purchases during their overseas travel,” said Singapore’s Central Bank. Singapore’s Monetary Authority of Singapore (MAS) announced last week that the country is expanding financial cooperation with BRICS member China.
Read here to know how many sectors in the US will be affected if BRICS completely stops using the dollar. The move could send shockwaves in the US leading to a potential financial turmoil and hyperinflation in the homeland.
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China is steadily advancing to uproot the US dollar’s dominance in the global markets. BRICS is convincing several other developing countries to trade in local currencies and cut ties with the US dollar. The move could hurt the prospects of the US dollar and reduce its demand in the international markets.
BRICS: China & Singapore Allow Tourists To Pay Digital Chinese Yuan, Skip US Dollar Payments
The “new digital finance and capital markets initiatives to expand its financial cooperation with China,” it said. MAS added that the main initiative is to launch the digital Chinese Yuan as a pilot in the country. “Cross-border e-CNY pilot between China and Singapore,” is the important initiative MAS explained.
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“MAS and PBCDCI are embarking on a pilot that will allow travelers from both countries to use e-CNY for tourism spending in Singapore and China. This will enhance convenience for travelers when making purchases during their overseas travel,” the report added.
