It is easy to understand if you take the example of rmb. The internationalization of the renminbi began to be mentioned 30 years ago, and one of the most important reasons is that it is optimistic about the overseas coinage brought about by the internationalization of the renminbi

It is easy to understand if you take the example of rmb.

The internationalization of the renminbi began to be mentioned 30 years ago, and one of the most important reasons is that the overseas seigniorage tax brought about by the internationalization of the renminbi is favored. After 30 years and a lot of work and efforts, the current offshore RMB market size is about 1 trillion yuan. Suppose that after 10 years, the RMB market is 10 times the current one, without considering currency derivation, that is 10 trillion yuan seigniorage tax, if you consider overseas RMB derivation, it may only be 2 or 3 trillion yuan seigniorage tax.

Of course, this figure is not small, but it is only worth the current two months or so of land sales income. A 100 trillion-level power, busy for 40 years, just for this economic benefit?

Further, even if it is expanded to 10 trillion yuan, it is actually a year's land sales income. From the perspective of rmb internationalization, it is an unprecedented and huge breakthrough. But from the perspective of seigniorage only, the investment is huge, the cycle is long, and the benefits are limited.

International currencies imply great responsibility for global trade and transactions, and in turn, the overt and implicit benefits of the defenders come naturally.