The People’s Bank of China (PBOC) has raised its mandate for yuan trade settlement: banks must now use the renminbi for at least 40% of cross-border trade, up from 25% (reuters.com).
Chinese state banks have significantly shifted loan and trade finance portfolios toward RMB—Chinese global bank lending now includes nearly 40% RMB, compared to under 20% a few years ago .
SWIFT data indicates the yuan is now the fourth most used currency globally, comprising about 4% of global payments, while the dollar remains about 40–50% (reuters.com).
2. eYuan (digital RMB) progress
📈 Usage to date
Since its public pilot in 2020, China has seen over 260 million wallets and around ¥7 trillion (~$1 trillion) in domestic transactions by 2024, spread across retail, transit, welfare and salaries .
Nearly 10 billion worth in transactions and ~140 million wallet downloads reported earlier (bitcoininsider.org).
1.5 million merchants are set up to accept e‑CNY; pilot features include offline NFC, SIM‑card storage, and transport payments (cryptorank.io).
🌐 Cross-border efforts
Pilot programs exist in Hong Kong and select FTA zones, enabling cross-border wallet use (reuters.com).
PBOC has pledged to push e‑yuan internationally, invoking a “multi‑polar currency system” vision (reuters.com).
3. China’s leverage
China is now the largest trading partner for over 140 countries . That large trade footprint gives it natural reasons to promote the yuan and e‑yuan in settlements—whether via CIPS (their SWIFT alternative) or making e‑yuan the default for BRI‑aligned countries. However, trust, liquidity, capital freedom, and legal transparency are still major hurdles .
4. Future roadmap
Scaling pilot zones: expanding testing beyond current FTZs using the “Shanghai model” (reuters.com).
Stablecoins: tech giants (Ant, JD.com) seek to launch offshore yuan-backed stablecoins to deepen global liquidity (reuters.com).
State enterprise drive: PBOC urges SOEs to use RMB/e‑yuan for trade and overseas investment (en.wikipedia.org).
Integration with gold, euro: central banks increasingly eye yuan (+e‑yuan) as part of reserve diversification (reuters.com).
Digital infrastructure ramp-up: continued improvements—offline payments, programmable currency, blockchain integrations .
5. Challenges & headwinds
Dollar dominance remains overwhelming—USD still ~45% of global payments, 80% of trade finance (reuters.com).
Trust and restrictions: limited capital convertibility, geopolitical mistrust, and internet censorship reduce appeal.
First-mover fatigue: domestic mobile platforms (WeChat/Alipay) still dominate. PBOC integration is slow (gsb.stanford.edu, reuters.com).
Global regulatory caution: countries wary of giving China financial surveillance power; partnerships limited.
✅ Bottom line
China has made measurable progress in both de-dollarizing trade and rolling out its digital currency domestically, backed by strong infrastructure and regulatory support. Its vexing challenge is translating this into real international usage. Leveraging its global trade heft helps, but deep, trusted, liquid international usage will require time, openness, and coordination with like-minded economies.
🧭 What to watch next
Area
Indicator
Offshore e‑yuan
Rollouts in Hong Kong/FTZ, stablecoin approvals in HK/Singapore
CIPS reach
Increased counterparties and international bank connections
Trade invoicing
Percent of BRI trade settled in RMB/e‑yuan
Reserve usage
Central bank reserve allocation data (RMB share)
China is laying the infrastructure and incentive framework to challenge dollar dominance—step by step. But until global capital mobility, trust, and scale catch up, the dollar's reign remains unshaken.
U.S. Trade Representative Jamieson Greer said Friday on CNBC that China has not removed non-tariff barriers as agreed. ......... “We haven’t seen the flow of some of those critical minerals as they were supposed to be doing,” Greer said. ........... China in December announced export bans to the U.S. of critical minerals including gallium, germanium and antimony. It announced more export controls on rare earth minerals in April, in response to Trump's tariffs.
Money makes you more of who you already are.
Broke and happy? Rich and happy.
Broke and miserable? Rich and miserable.
Figure out how to be happy first. Then go make your money...
A rhino casually walked into the wedding venue reportedly in #Nepal’s Chitwan during a wedding reception. As per reports, the wild beauty was assumed to be from the #ChitwanNationalParkpic.twitter.com/QXRfrpFDWo
If you reject unilateralism, bullying and aggression. If you choose instead cooperation, shared prosperity and security, the EU will always be by your side.
What apps or research reports you would like to see out of Labs? We are cooking the next version already that will be more powerful. Let us know in comments.
Kremlin staged drone attack on Putin's helicopter Four sources within the government and the Kremlin told The Moscow Times that security officials promoted this shocking and "risky" episode in the media to convince Russians that their leader is not hiding behind others, but is also supposedly taking risks and making sacrifices......... The Moscow Times reported that the "sensational claim" that Putin’s helicopter had found itself "in the epicentre of a large-scale enemy drone attack" was disseminated by the Russian Defence Ministry via the state-run VGTRK television channel.
You are maybe not factoring in the tariffs.
— Paramendra Kumar Bhagat (@paramendra) May 31, 2025
perplexity quietly built a kind of cognitive operating system. it’s not really a google competitor anymore… framing it that way just shrinks your imagination & does it a huge disservice.
i think of it as a swiss army knife for thought… retrieval, execution, synthesis, all… https://t.co/Lymt5pOBoV
— Paramendra Kumar Bhagat (@paramendra) May 30, 2025
One of the weirdest moments I’ve ever had at MIT was pulling an all nighter for the 6.004 final project, going to office hours at 7am the following morning geeked off of 10 Red Bulls and then randomly meeting the President of South Korea on the way there like it was nothing
after many fake customer inbounds, it was a breath of fresh air to finally get a real one — i fr doubted them every step of the discovery — i was like are you suuuuure you want salesforce 😭😭
“These tools are starting to reduce the number of junior folks needed in finance venture and investment banking and consulting” pic.twitter.com/2e9hda5TZw
So many people dream of moving to SF to be part of the tech frontier. Some drop out of college for it. But it’s just another college where you’re graded on the ARR of your startup.
three nights before this launch, just a couple of hours after we left the office for the night, a burglar used a crowbar to break into our office and stole thousands of dollars of equipment.
My grandfather survived Auschwitz, worked his ass off to get a PhD in physics despite 5 years of slave labor w no schooling, and came to the US to build the camera for the Apollo missions. But I guess you don't want ppl like that in our country anymore you ungrateful jackass https://t.co/hsHiYoxN2Y
People won’t be transported to Mars in reusable rockets like Starship. I’m not exactly sure what the technology will be, because it will be designed and built in the post ASI era (2030s) - but it will be far more advanced than rockets. Starship-like technology and similar designs… pic.twitter.com/tT3fea7jO6
— Paramendra Kumar Bhagat (@paramendra) May 31, 2025
Together, we will rebuild the credibility of a wounded Church, sent to a wounded humanity, within a wounded creation. We are not yet perfect, but we must be credible: our lives must be transparent, visible, and credible!
Chesterton said: “Fairy tales do not tell children the dragons exist. Children already know that dragons exist. Fairy tales tell children the dragons can be killed.”
We treat children like they’re dumb, but they see truths about reality that adults are blind to. Rationality has…
These are the people who enter corporate world and post grievances on Slack, cause constant conflicts/drama, are always angry about the world and not focused on the business. We've all seen it firsthand. Huge warning you risk a lot hiring them, and they usually have a nice degree https://t.co/RNkowecWMv
Despite having fewer computing resources and capital available than its U.S. competitors, XPeng’s self-driving cars performed better than Tesla’s in China, according to Gu.
.......... When the Chinese AI startup DeepSeek released its R1 large language model in January, it shook the entire industry with its remarkable performance and efficiency. DeepSeek had spent a fraction of what the major U.S. companies such as Google and OpenAI had spent on their AI models, yet produced comparable results. ............. Those issues were resolved, making Tesla’s program available again,
although with a name change from “Full Self-Driving” to “Intelligent Assisted Driving.”
............. Despite the name, Tesla’s FSD system still requires human drivers to remain fully alert in the car in order to intervene at any moment. FSD is classified as level two autonomous driving. XPeng’s cars currently have the same self-driving classification. ........... Software for level-three autonomy would be completed in the back half of this year and level four would be ready in 2026, XPeng said in March. ............ “Now we’re looking at potentially having level 3 in two years; level 4 probably in four years, that can be widely used on Chinese roads”
Elon Musk's Drug Use Much Greater Than Previously Known: New York Times Musk’s attorney Alex Spiro told the Journal at the time that his client is “regularly and randomly drug tested at SpaceX” and has “never failed a test.” ........ In April, Rep. Mikie Sherrill (D-N.J.) introduced a bill that would require Musk and his hires at the so-called Department of Government Efficiency to undergo regular drug testing, though the bill has gone nowhere in the Republican-majority house.
Steve Bannon says Elon Musk and Scott Bessent had "physical confrontation" According to Bannon, Bessent confronted Musk over his sweeping but unfulfilled promises to deliver $1 trillion in budget cuts. "Scott Bessent called him out and said, 'You promised us a trillion dollars in cuts, and now you're at like $100 billion. Nobody can find any savings. What are you doing?'" Bannon recounted........... According to Bannon, Musk's status in Trump's orbit also diminished after the March leak that he was slated for top-secret military briefings on China, which Trump abruptly canceled. Bannon noted, "The president backed [Bessent] just like the president didn't allow the briefing on China," adding, "People in the administration and the White House realized he didn't have any idea what he's doing. They cauterized the damage." ............... Bannon emphasized that this marked a turning point: "That's the inflection point, you see Elon all changed from that moment." ......... Bannon also criticized Musk's handling of his DOGE promises, particularly after Trump's State of the Union address that referenced millions of allegedly fraudulent Social Security recipients over age 100. Musk's claims of fraud were debunked as "primarily due to an accounting error," with Bannon stating, "Not one penny was ever shown to have been sent to these people." ............. "Is anyone trying to talk to Elon now? No," Bannon remarked, attributing the fallout from the White House's "Big Beautiful Bill" to Musk. He explained that Republicans in Congress had counted on Musk's promised spending cuts, but "he didn't deliver." .......... Bannon said, "The political class on Capitol Hill willingly got behind a pied piper and wasted five months." .............. "The people at fault here are Congress. They wanted to have a fairy godmother come in and wave a magic wand and say, it's all fraud, and get them off the hook. Particularly [House Speaker Mike] Johnson…they didn't invite Musk to Capitol Hill because they think he's politically radioactive, and they all lined up and didn't do the work on these bills…There's no cuts." ........... Musk's decision to step down was likely a strategic move to recover his image, with polls acting as real-time barometers of his personal brand health. .......... The Axios Harris Poll 100 places Tesla and SpaceX near the bottom of the rankings, at 95th and 86th, respectively. ............ During the press conference, Musk appeared to have a black eye. When asked about it, he joked that he wasn't "anywhere near France," a reference to an incident where French President Emmanuel Macron's wife Brigitte was seen pushing her husband before they walked off an airplane. ............ Trump, who said he hadn't noticed Musk's black eye, smiled at the story and added, "X could do it. If you knew X, he could do it." ......... Following news of Musk's departure, Scott Bessent publicly praised the billionaire on X, writing: "@DOGEand@elonmusk have set some very important work in motion—which we are committed to continuing. The Trump administration is cutting costs and making the government more productive for the American people."
Twitter is like overhearing people at a coffee shop, bits and pieces, but generally you can get the vibe. A podcast is like you’re at a house party and you are overhearing a crazy conversation. You can get the vibes, but also insight into how people think with context.
Shannon Sharpe fiasco is a good reminder that hyper successful men still don't have control over their mind and subconscious. Being able to tame your impulses puts you in the top 0.00001% even if you're broke
— Paramendra Kumar Bhagat (@paramendra) May 31, 2025
In 45 states, the annual cost of childcare exceeds the average annual mortgage payments — in some cases by up to 78%.
Childcare reform is common sense legislation to help working-class families. Congress needs to pass my bill that would provide childcare at $10/day while paying…
In recent years, a notable shift has emerged in global trade dynamics: countries are increasingly entering bilateral currency agreements to reduce reliance on the U.S. dollar. This trend is particularly evident among BRICS nations and their partners, who are exploring alternative financial arrangements to enhance economic sovereignty and mitigate exposure to dollar-centric risks. (De-dollarisation & BRICS' quest for financial sovereignty)
🌐 The Rise of Bilateral Currency Agreements
Bilateral currency agreements involve two countries agreeing to settle trade transactions in their local currencies, bypassing the need for a dominant third-party currency like the U.S. dollar. These arrangements aim to facilitate smoother trade, reduce transaction costs, and shield economies from external financial shocks.
Notable Examples:
India–UAE: In July 2023, India and the United Arab Emirates signed an agreement to settle trade in their respective currencies, the rupee and the dirham. This move was exemplified when the Indian Oil Corporation paid for its first crude oil import from the Abu Dhabi National Oil Company in rupees. (UAE Entry into BRICS Increases its Diplomatic and Economic Options)
India–Russia: Amid Western sanctions, India and Russia have expanded their trade in local currencies, particularly for oil transactions. However, Russia has accumulated a surplus of rupees, highlighting challenges in utilizing non-convertible currencies for broader international trade.
China–Argentina: Facing a shortage of U.S. dollars, Argentina has turned to the Chinese yuan for imports, utilizing a bilateral currency swap agreement with China. This arrangement has been extended, allowing Argentina to access additional funds in yuan to stabilize its economy. (Deal extension allows Trump ally Argentina to borrow another $5 billion from China)
China has been proactive in promoting the internationalization of the yuan (renminbi) through various mechanisms: (Internationalization of the renminbi)
Digital Yuan Initiatives: China is advancing the use of its digital currency in cross-border transactions, aiming to modernize payment systems and reduce reliance on traditional financial networks. (China ramps up global yuan push, seizing on retreating dollar)
Expansion of Financial Infrastructure: Efforts are underway to enhance Shanghai's financial services and strengthen the Cross-Border Interbank Payment System (CIPS), providing alternatives to the SWIFT network. (China ramps up global yuan push, seizing on retreating dollar)
📈 Projected Growth and Implications
The shift towards bilateral currency agreements is expected to grow, driven by geopolitical tensions, the desire for financial autonomy, and technological advancements in digital currencies. While the U.S. dollar remains dominant, the increasing adoption of local currencies in trade could gradually reshape global financial systems.
However, challenges persist, including currency convertibility issues, exchange rate volatility, and the need for robust financial infrastructure. The success of these bilateral arrangements will depend on the participating countries' ability to address these challenges and build mutual trust.
In conclusion, the trend of countries engaging in bilateral currency agreements signifies a transformative phase in international trade, reflecting a collective move towards diversified and resilient economic partnerships.
China's Dedollarization Drive: A New Era of Currency Competition
The global financial landscape is undergoing a significant transformation as China intensifies its efforts to reduce reliance on the U.S. dollar—a process known as dedollarization. This movement is not solely about replacing the dollar but about reshaping international trade, finance, and geopolitical influence.
China's Dedollarization Strategy
China's dedollarization approach is multifaceted, aiming to:
Promote the Renminbi (RMB) in Global Trade: China is encouraging the use of its currency in international transactions, particularly with countries in the ASEAN region. In 2024, cross-border RMB settlements in ASEAN exceeded 5.8 trillion yuan, marking a 120% increase from 2021.
Develop Alternative Financial Systems: To reduce dependence on U.S.-dominated systems like SWIFT, China has established the Cross-Border Interbank Payment System (CIPS), facilitating RMB-denominated transactions.
Expand the Digital Yuan (e-CNY): China's central bank digital currency (CBDC) has seen substantial growth, with over 7 trillion yuan ($986 billion) in transactions by mid-2024. The digital yuan aims to enhance the RMB's global reach and offer an alternative to dollar-based digital payments.
Progress and Challenges
While China's dedollarization efforts have gained momentum, several challenges persist:
Limited Global Adoption: Despite growth, the RMB's share in global payments remains modest. As of 2023, it accounted for 4.3% of global payments, surpassing the Japanese yen but still trailing behind the U.S. dollar (47%) and the euro (23%).
Capital Controls: China's strict capital controls hinder the RMB's liquidity and its potential as a global reserve currency.
Trust and Transparency: Global investors often express concerns about China's regulatory environment and the transparency of its financial systems, which can deter widespread adoption of the RMB.
The Role of BRICS
The BRICS nations—Brazil, Russia, India, China, and South Africa—are collectively exploring dedollarization strategies:
BRICS Pay: An initiative to develop a decentralized payment system facilitating transactions in local currencies, aiming to reduce reliance on the U.S. dollar and SWIFT.
Petroyuan Discussions: Russia has proposed denominating oil trades in yuan, a move that could challenge the dollar's dominance in energy markets.
Common Currency Considerations: While discussions about a unified BRICS currency exist, significant economic disparities and differing monetary policies among member nations make this a complex endeavor.
A Multipolar Currency Future?
The global financial system is gradually shifting towards a more multipolar structure: Diversification of Reserves: Countries are increasingly diversifying their foreign exchange reserves, reducing the proportion held in U.S. dollars.
Emergence of Regional Currencies: Currencies like the euro and the RMB are gaining traction in regional trade agreements and financial transactions.
Technological Advancements: The rise of digital currencies and blockchain technology is facilitating alternative payment systems, potentially reducing the dominance of traditional currencies. While the U.S. dollar remains the predominant global reserve currency, these developments indicate a gradual move towards a more diversified and multipolar currency landscape.
In conclusion, China's dedollarization efforts, bolstered by technological innovations and strategic alliances like BRICS, are reshaping the global financial order. While the transition to a multipolar currency system will be gradual and complex, the foundations for such a shift are increasingly evident.
