On the occasion of the 50th anniversary of the establishment of the Central Bank of the United Arab Emirates, Sheikh Mansour bin Zayed Al Nahyan, chairman of the board of directors, with a stroke of the pen, transferred 50 million dirhams to China with the first digital currency swipe, which is not a very large amount, but this is a historic cross-border payment, and if this trend continues, it may shake the foundation of the hegemony of the dollar.
At the end of last year, the People's Bank of China and the Central Bank of the UAE signed a bilateral currency swap agreement on RMB and dirhams, with a total amount of 35 billion yuan and a term of 5 years.
Let's look at the UAE's operation, which is a fundamental change in their financial and settlement diversification. For the RMB, it will also adopt this model between it and our RMB, which is also part of our local currency conversion, which is very significant.
First, this is the first trial application of blockchain and digital currency, which means the beginning of a new era of settlement and finance.
Second, after the use of digital currency, its settlement methods and settlement paths will inevitably undergo fundamental changes, at least it is no longer limited by the Swift settlement system controlled by the United States.
Thirdly, the future of the UAE and our cooperation in science and technology and information technology will definitely be further deepened.
The multilateral currency bridge they are building now is actually using our technical body. And the UAE's approach is quite provocative, it is very interesting in the Middle East, the boss of the Middle East must be Saudi Arabia, then the UAE is often ahead of Saudi Arabia, in fact, he is probing the wind to carry out some testing, in fact, they are trying for the entire Middle East region.
If that is too bold in the past, it is to shake the financial hegemony of the United States, which is almost looking for death. Now that the United States has begun to decline, it has begun to overdraw its national strength, including its hard power and soft power, and rely too much on its hegemony to harvest the world.