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Chapter 751: Chapter 652: The First Step Towards Internationalization (Seeking Subscription!)_1
This is also why Alipay and others are so proactive in expanding their financial services. They want to expand their banking business, get assimilated, and obtain a bank license rather than attain so-called freedom.
They know that it is impossible to keep going in the future.
They can only have the option of being assimilated.
Therefore.
Don’t look at Ma Yun who is strongly advocating the transformation of traditional banks.
The real meaning is not to compete with banks, but to say: my model is the future, it is efficient, and it cannot be eliminated. Come on, big shots, I am asking for protection, I am asking for a bank license.
It’s nothing more than that. 𝚗o𝚟pub.𝚌𝚘𝚖
This is Ma Yun’s ultimate goal.
To achieve a status equal to that of other banks.
Command Room.
"Tang Yi, I want to issue credit cards through Myanmar Bank now, what should I prepare?" Tang Qing has decided to start dealing with credit card business.
Tang Yi respectfully replied, "Commander, no additional equipment is needed. We can start issuing credit cards at any time. The personal credit records of the Myanmar Economic Zone have been established. The credit card production can be completed at the ’Currency Clearing Center’. All we need to do is issue the related credit card contract documentation."
This is very simple.
Tang Qing likes it, so he nodded and said, "Okay, let Myanmar Bank release the news that it will start credit card business at the beginning of next month. We can’t be surpassed by ICBC and China Construction Bank."
Although Lang Cai didn’t agree to let two major banks in Huaxia carry out credit card business in Myanmar, but postponed it for three years.
But how could the two major banks be willing to accept that?
As far as Tang Qing knows, they plan to propose in the upcoming loans that Huaxia’s banks are allowed to carry out credit card business in the Myanmar Economic Zone, and they are very determined. After all, who controls this large loan, and also, the Myanmar Economic Zone has demand for Huaxia’s banks.
Therefore.
This condition must be accepted by Ling, Lang Cai is afraid that Myanmar’s credit card market will be seized, but Tang Qing, who has the system, is not afraid, so he doesn’t plan to let Ling refuse.
If we agree.
Of course, I will have to fix the credit card market before they enter the Myanmar Economic Zone.
Moreover, the commodity circulation in the Economic Zone is increasing nowadays, the material life is greatly enriched, and people also need overconsumption. Intervening at this point is neither early nor late.
...
The next day.
Morning.
The huge loan of 1.6 trillion RMB from Myanmar to Huaxia, under a round of applause, the two sides signed a preliminary agreement. After the collateral is verified on the spot once again, the central banks of both sides will dock on some details of the clause.
This loan will officially take effect.
All the loans will be transferred to Myanmar’s RMB account at Huaxia Central Bank.
Just like the US dollar, all non-cash US dollars have never left the United States, and non-cash euros have never left the euro zone. The RMB loan will of course not leave the country, it is just that the central bank has opened an account for Myanmar.
It is agreed that the account contains 1.6 trillion RMB. The more you use, the less you have. This account is different from Myanmar’s RMB foreign exchange reserves account. Like this loan, this money also exists in Huaxia Central Bank, and it belongs to the Myanmar government.
Because of the limitations of the use of this loan, an additional account was opened.
The signing of intention took less than ten minutes.
The news spread out, appearing on major domestic news website platforms, not only causing a sensation throughout Huaxia, but also spreading abroad in less than half an hour, with unabated momentum.
An RMB loan!
What does this mean?
Everyone knows that recognized loans are settled in US dollars, because US dollars can buy almost any commodity, whether it is oil, gold, minerals, agricultural products, etc., they are all recognized worldwide.
But RMB?
At present, the international status of RMB can be said to be very floating. Apart from a few countries that have a limited reserve of RMB, most countries do not take RMB seriously and even refuse to accept it.
Because the US dollar can buy oil.
RMB... can hardly buy anything internationally.
The most important point.
Huaxia is now a country that imports oil and minerals.
The consumption of resources in all aspects is huge. You are a buyer with strong resource demand. How can you become a seller? The recent market is not going well, and the long-term prospects are not optimistic.
I want oil, I want minerals, I want agricultural products.
You not only lack surplus to sell but also import a large number of products. Due to your large amount of imports, sometimes it causes a price increase. I have to spend more dollars to buy, how can we play happily?
Now, Huaxia actually issued such a large RMB loan to Myanmar. It is a heavy bomb, which has caused a huge response worldwide. It is also the first time that RMB has let everyone recognize its purchasing power.
"Huaxia loans 1.6 trillion RMB to Myanmar. This is an important milestone in the internationalization of RMB!"
"The Starting Year of RMB Internationalization is here!"
"Good news! Huaxia’s market will receive contracts for purchasing hundreds of billions of RMB. Who will get a piece of the cake?"
"..."
The domestic news is basically full of praise.
Everyone was filled with excitement and anticipation for the internationalization of the RMB.
As for the foreign media, they were not as happy.
"RMB loans? What can you buy with them?"
"Beware! The RMB is challenging the status of the US dollar."
"Myanmar may likely fall into a debt quagmire."
"The regional influence of the RMB is increasingly strengthening, and it may jointly launch a regional currency with Asian countries!"
"..."
The foreign media, anyway, just want to watch the excitement, they do not fear intense drama or harsh criticism, they fear no audience. All kinds of speculations and doubts were rife, as if without a sensational title, no one would pay attention.
And indeed, it was the case.
In Western countries, following many years of media hype and deception, without a good title, there would be no views. Clickbait titles were practically a necessitity forced by circumstance.
Some suspect that Myanmar cannot pay back the money, fearing that it will fall into a debt quicksand.
Others look down on Myanmar for wanting to learn China’s development path, considering it hopeless.
There are some talks about the expansion of the territory of the RMB, challenging the status of the US dollar. However, there were few such voices, as the internationalization of the RMB is destined to meet difficulties and obstacles without sufficient purchasing power. Most people were not optimistic about it.
As long as the international prices of oil, gold, and bulk commodities are denominated in US dollars, the rise of the RMB is basically impossible, especially when there are not only supply shortages but also needs for massive imports.
The views were mixed.
There were both joys and worries.
This matter has become a focus. Although Western countries are pessimistic about the internationalization of the RMB, many countries have also noticed this loan model.
Those countries are contemplating what kind of impact it will have if they received RMB loans.
Just with this thought,
Everyone’s mind started to race.
Yes.
The RMB cannot purchase oil, gold, nor food.
But you can buy China’s industrial products and services. Just like Myanmar this time, it doesn’t need to buy these things. It only needs to develop its domestic economy and build up its infrastructure. It won’t be encroaching on the US dollar’s traditional field.
If they also accept the RMB,
Wouldn’t they be able to exchange it for railways, highways, airports, wharfs, etc? The US dollar can offer these, but the process is very cumbersome. Plus, they can borrow US dollars to buy raw materials and borrow RMB to buy finished industrial goods.
This is not conflicting at all.
And this,
Is exactly what China wants.
Due to the inherent problems of the RMB, it cannot intrude into the traditional realm of the US dollar, but the RMB can at least consume these scraps, right? If one isn’t enough, a multitude would certainly suffice.
They could eat their fill.
This is also why China was so proactive about this loan.
They want to set an example.
This could also be considered as the first step towards the internationalization of the RMB.
...
As for whether the internationalization of the RMB will have an impact on the Asia Dollar,
Tang Qing is not worried.
These are two different paths.
The internationalization of the RMB seeks crumbs and influence. It has never thought of replacing the US dollar, nor is it capable of doing so. Everyone has suffered the pain of the US dollar and deeply despises it, but there’s no way to shake it off.
It’s impossible to bring down the US dollar and replace it with the RMB, another sovereign credit currency.
This is something that the whole world cannot accept.
The experience of the US dollar has given the whole world a lesson.
That is---no sovereign credit currency can become the world currency. No one is interested in helping the RMB in this regard, and the RMB also cannot accomplish this.
What the Asia Dollar seeks is the status of world currency.
In other words,
The objectives are different.
The abilities are different.
The methods of operation are different.
Therefore, Tang Qing is not at all worried that the RMB will take the Asia Dollar’s cake.
Because he doesn’t care about the crumbs, what he wants is the whole loaf. The journey will surely be full of hardships and bloodshed. However, when it comes to bringing down the US dollar, Tang Qing is highly interested and eager.
With the system in place,
He simply cannot lose.
