China isn't all that ready for de-dollarization as well.REUTERS/China Daily The Chinese yuan is one of the top contenders challenging the USD's dominance as a reserve currency. However, Beijing may not be fully supportive of making the yuan the reserve currency of choice. Key challenges include Beijing's unwillingness to open its capital accounts or to run a deficit. A debate over de-dollarization has raged on for the past year, fanned by fears that Washington's weaponizing the US dollar-denominated global financial system against Russia over the Ukraine war.Even high-profile investors have weighed in — sanctions that squeezed Russia's dollar currency reserves "increased the perceived risk that those debt assets can be frozen in the way that they've been frozen for Russia," billionaire investor Ray Dalio cautioned.Consequently, various countries started lining up non-dollar currencies and alternative assets to use in trade and to stash in their reserves.Enter, the Chinese yuan.The Chinese currency is having its moment in the sun as a potential challenger to the US dollar-dominated global payments system.While the currency isn't the greenback challenger, it is the most high-profile contender, against the backdrop of US-China tensions and Beijing's alliance with Russia amid the Ukraine war.

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