Study On The Internationalization Of The Use Of RMB

Review the evolution history of the international monetary system,we can find the constantly changing of the international currency and the rise and fall of the great powers.Today China is the second largest economy and the largest trading country in the world,but the internationalization level of the RMB and the status of RMB in the international monetary system is still low,which cannot match the size of China's economy.In addition,the world economic order,including the international monetary system,is undergoing unprecedented changes,the emerging economies including the BRICS have become the new engine of world economicgrowth.The US sub-prime debt crisis triggered a global financial crisis which spread by the US dollar quickly like Domino and became the finance-quake all over the world.The financial tsunami led to the world recession,until today the world economic recovery is still very slow.The financial crisis exposed the disadvantages of the international monetary system which is dollar-dominated.After the crisis,more and more countries have raised the reform of the international monetary system.The international financial system is ongoing in the direction of the long-term and profound transformation.At the same time,because of the European sovereign debt crisis,people began to worry about the future of the Eurozone.In this background,we will have a golden time to develop the internationalization of the RMB.RMB internationalization must be promoted as a national strategy because it affects the future of national economy and finance.If we want to have a good place in the game of global financial resources competition and occupy the high ground of the global economy in the future,we must use our own advantages to promote the internationalization of RMB.Although RMB internationalization will bring something negative such as increase the difficulty of the domestic economic macro-control,there will be more advantages than disadvantages in the long run.Therefore,we should conform to the trend of the timesand promote the internationalization of both the physical RMB and digital RMB synchronously,in order to maximize the interests of our country.This paper is based on Monetary Internationalization Theory,Late-developing Advantage Theory and the digital currency knowledge.It shows us the traditional advantages and backwardness advantages of the physical RMB through the SWOT method and the comparative advantage of digital RMB through Porter's five forces model.Then we discuss how to transfer these potential advantages into the real advantages and propose the twin-engine path model and the policy suggestions.