The Future World Currency Order Through The Eyes of China

Currency

Has anyone noticed that China is in the news a lot lately? Picking up a story out of Asia, China is going to circumvent the U.S. dollar with a crude oil futures contract, priced in yuan AND convertible into gold. GAME CHANGER. What does this have to do with fintech? China is close to launching a digital currency, banning ICO’s (good luck with that) and now circumventing the dollar based oil market with what will soon be a digital oil/gold contract. One can only surmise China is taking over the financial technology world. Oh yeah, Russia and Iran are also participants. Take that CFTC and SEC.
(Bill Taylor/CEO)

“DENPASAR, Indonesia — China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry

The contract could become the most important Asia-based crude oil benchmark, given that China is the world’s biggest oil importer. Crude oil is usually priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.

China’s move will allow exporters such as Russia and Iran to circumvent U.S. sanctions by trading in yuan. To further entice trade, China says the yuan will be fully convertible into gold on exchanges in Shanghai and Hong Kong.

“The rules of the global oil game may begin to change enormously,” said Luke Gromen, founder of U.S.-based macroeconomic research company FFTT.

The Shanghai International Energy Exchange has started to train potential users and is carrying out systems tests following substantial preparations in June and July. This will be China’s first commodities futures contract open to foreign companies such as investment funds, trading houses and petroleum companies.

Most of China’s crude imports, which averaged around 7.6 million barrels a day in 2016, are bought on long-term contracts between China’s major oil companies and foreign national oil companies. Deals also take place between Chinese majors and independent Chinese refiners, and between foreign oil majors and global trading companies…”

Full story at Asia.nikkei.com