China 'Has Long Way to Go' Before Challenging US Dollar
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David Roche, President and Global Strategist at Independent Strategy, does not believe China will challenge the US dollar’s status as a reserve currency even with the digital yuan.

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In an interview with CNBC, Roche said that China's digital currency will not make any difference in short-term perspective as the US dollar will remain with its status for a while:

"Such a phenomenon is going to happen, though it will take a very, very long time. Do not be in a rush to play on that particular theme because I think the dollar is going to sit there for a while yet."

However, Roche admitted that the reserve currency status is usually determined unfairly, citing the US economy that has "progressively shrunk over the last two decades."

"The US economy has progressively shrunk over the last two decades, it is a smaller proportion of international trade. Yet the dollar is an increasing proportion of the settlement of international trade and an even bigger proportion of financial reserves," he said.

Ripple CEO Brad Garlinghouse said earlier this year that the US dollar as the world’s reserve currency will not disappear in favor of crypto or other asset any time soon.

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Garlinghouse agrees that the US dollar is currently weaker than before the coronavirus-related crisis began, however, the dollar has been the backbone of global financial infra, and "that position is not going to disappear any time soon."

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