Some U.S. officials saw the digital yuan as a potential threat.

According to the publication, the administration of American President Biden is carefully studying China’s plans for the digital yuan. Some of the staff fear that he could kickstart “a long-term effort to topple the dollar as the world’s dominant reserve currency.”

US Treasury, State Department, Pentagon and National Security Council officials are stepping up their efforts to understand the implications of the digital yuan. Particularly, they want to explore ways of spreading the currency and the possibility of circumventing US sanctions with its help. Washington considers it especially important which consequences for the global financial system may appear in the long term.