Crypto Dollar Power: Why USDT Beats China’s Yuan

USDT and the Chinese EV in Bolivia

In Bolivia, a BYD Dolphin Mini electric car was sold and paid for in USDT instead of the yuan. This illustrates that while China is actively pushing its de-dollarization strategy and promoting the yuan as an alternative, stablecoins are the real instruments dominating global trade. This real-world practice highlights the gap between political ambitions and practical choices made by global users.

China’s de-dollarization ambition

For years, Beijing has pursued the goal of reducing reliance on the U.S. dollar. Its efforts include establishing currency swap lines with Latin American countries, piloting central bank digital currencies (CBDCs), and encouraging cross-border settlements in yuan. However, these initiatives remain largely symbolic and theoretical rather than practical, as businesses and consumers worldwide have not shown strong demand or trust in adopting the yuan at scale.

Why USDT outperforms the Yuan

USDT stands out for three key reasons: liquidity, speed, and trust. It is highly liquid and easily exchangeable worldwide, whereas the yuan is restricted by China’s capital controls. Transactions with USDT are fast and bypass international banking delays. Most importantly, its peg to the U.S. dollar provides reliability and confidence to users. In contrast, the yuan is heavily influenced by China’s domestic monetary policies and limited convertibility abroad, making it less competitive for cross-border commerce.

Stablecoins as the “digital Dollar”

Unlike CBDCs that are still in experimental phases, stablecoins such as USDT are already embedded in daily commerce. In countries facing inflation and strict capital controls, stablecoins are used as a tool to preserve value and enable swift transactions. This makes USDT the true “digital dollar,” reinforcing rather than weakening the dominance of the USD in the global system.

Market trends and outlook

Market signals support this narrative. Bitcoin and Ethereum show mild downturns, while gold remains near record highs. Global investors are paying attention to U.S. interest rate cut expectations, geopolitical shifts, and macroeconomic trends. All of these factors influence the strength and attractiveness of stablecoins.

Conclusion: The power of the Crypto-Dollar

The BYD sale in Bolivia paid in USDT is a clear demonstration that global currency power is no longer defined by political ambition but by what actually works in real commerce. Despite China’s hopes for the yuan to reshape the system, it is the digital dollar—not the digital yuan—that is steering international trade today.

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.