alt Hacker NewsUnless China wants it to happen, it won't have the reserve currency. It would require big changes in China's part to make it happen. I fully agree with you that they wouldn't open up things like equities markets in a way that could be trusted by outsiders. But I do think they could open up access to the currency.
Right, but what I'm arguing is that the currency isn't going to be that valuable without doing things like opening their markets to outside investors. You could just go with the Euro even if you didn't like the dollar.
That's the thing I keep coming back to. What are the specific features of the currency that make it more valuable than the other reserve currencies that exist today? I don't think China is willing to do what they would need to do add those features, because it requires CCP to loosen control and they can't do that.
If China "democratized" it would unlock a ton of potential and go on to dominate the globe. But doing that requires untenable changes for the CCP so it won't happen.
Plus everyone is going to be mad and distrustful once they invade Taiwan.