DIGITAL YUAN, DE-DOLLARIZATION, AND THE FUTURE OF GLOBAL MONETARY GOVERNANCE

China's digital yuan (e-CNY) has become the world's largest live central bank digital currency (CBDC) experiment, with cumulative transaction volume reportedly exceeding 2.3 trillion US dollars by late 2025, while Project mBridge, its cross-border settlement platform, has grown roughly 2,500-fold in transaction value since its 2022 pilot. These developments are frequently cited as evidence of accelerating de-dollarization. This article evaluates that claim against the quantitative evidence on the dollar's continued role in official reserves, trade invoicing, and payment messaging. The analysis finds a genuine but asymmetric picture: China's digital currency infrastructure is expanding rapidly in absolute terms, yet the US dollar's share of global reserves, while gradually declining, remains dominant, and much of the reported quarterly variation reflects exchange rate valuation effects rather than active reallocation. The article concludes that current evidence supports gradual, infrastructure-led diversification rather than imminent displacement of the dollar.