Is China trying to overthrow US Dollar with its Digital Currency?

Bank for International Settlements (BIS) says China Central Bank has completed a trial of digital currency focused on cross-border transactions.

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BIS added, more than 160 cross-border payments and foreign exchange transactions totalling more than $22 million were made during the initial trial.

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It includes China, Hong Kong, Thailand and the United Arab Emirates to enable cheaper, safer, real-time cross-border payments and settlements.

The development comes as the US dollar rises sharply against other currencies, triggering capital outflows from emerging markets and threatening the health of the economy.

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China is testing digital currencies in major cities, mostly for domestic retail payments, but the central bank has also pledged to consider cross-border payments in the digital yuan.

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China being the world's second-largest economy has agreed to discuss setting a global standard for fiat digital currencies as the international monetary system evolves.

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Russia has also announced plans to use its own digital currency to do business with China.

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