A news portal affiliated with the Communist Party of Brazil, Vermelho, has published an extensive article praising China's central bank digital currency (CBDC), the digital yuan (e-CNY), as a disruptive monetary innovation. The article argues that China, as the world's first major economy to launch a sovereign digital currency, is reshaping the global financial landscape. Unlike traditional electronic money that relies on commercial bank intermediation, the digital yuan allows the central bank to conduct direct transactions with the public. Vermelho emphasizes that this model enables direct transfers from the central bank to citizens, whether for emergency aid during crises like the COVID-19 pandemic or for regular minimum income programs.
Ending America's 'Exorbitant Privilege'
The article goes on to claim that the digital yuan's greatest impact may be geopolitical. Vermelho cites International Monetary Fund (IMF) data showing that approximately 88% of international financial transactions—both trade and investment—are denominated in the U.S. dollar; 93% of China's imports and 95% of its exports also use the greenback. Most of these transactions flow through the U.S. banking system, granting the United States what has been called the “exorbitant privilege.” The article suggests that the digital yuan could weaken dollar dominance and promote a more diversified international monetary system. It also references The Economist's figure that over 50 monetary authorities are exploring CBDC issuance. However, Vermelho conveniently omits the same magazine's warning that CBDCs could become a “panopticon” for government surveillance of citizens.
From Inventing Paper Money to Ending It
The article features a striking quote: “The Chinese invented paper money thousands of years ago. Maybe they are bringing it to an end.” China is currently testing the digital yuan with 500,000 consumers across 11 regions. Yet the piece does not mention that Beijing has simultaneously tightened restrictions on decentralized cryptocurrencies. China's central bank has reiterated its ban on crypto-related services and has vowed to monitor bitcoin mining and crack down on crypto trading. While these measures do not represent a massive new offensive against unlicensed digital money, they have spooked cryptocurrency markets in recent days and underscore the looming clash between CBDCs and permissionless digital assets.
Brazilian crypto news outlet Portal do Bitcoin noted that Vermelho ignored The Economist's crucial caution: government-issued digital currencies could evolve into a “ubiquitous surveillance tool for the state to control citizens.” This concern is gaining traction globally. Although CBDCs offer advantages in payment efficiency and cross-border cost reduction, their centralized nature raises significant privacy and freedom issues. China's digital yuan employs a “controllable anonymity” design that attempts to balance convenience with regulatory oversight.
Industry observers point out that a global CBDC race is already underway. A Bank for International Settlements (BIS) survey indicates that nearly 90% of central banks were researching or testing CBDCs as of 2025. Brazil itself is advancing its digital real (Drex) project. Vermelho's article represents a radical left-wing perspective that supports state-controlled digital currencies, but the complex interplay between technological evolution and geopolitics means the ultimate form of CBDCs remains highly uncertain.