State-backed digital currencies are being considered by China and the European Central Banks

China's central bank has advanced plans for the Digital Currency Electronic Payment (DCEP) system which will totally alter the world monetary system. The US dollar accounts for roughly 40% of international payments and 60% of global foreign currency reserves. State-backed digital currencies are being considered by China and the European Central Banks. For such a move, Russia has been developing a national security strategy. However, the dollar's dominance in international payments is stifling globalization. Several governments are working to improve the situation. China's DCEP could be operational in the next 18 months, while Russia is developing a national security plan.

With tensions between the world's main nations at an all-time high, many suspect the United States of gaming the system to its own benefit. According to Simon Tisdall, many countries are taking steps to change the situation. Countries will have even greater advantages over SWIFT when they establish their own digital currencies. They will be backed by governments, making truly decentralized cryptocurrencies like Bitcoin uncompetitive. It will be able to handle far bigger payment volumes and will not require bank accounts or internet connectivity.

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