Interesting post. I think you're right, that the Chinese will probably make a play with the digi yuan.
We've been there before though, when China made a big push for the yuan to be the default currency in oil contracts. Couldn't do it, and they're still tied in to the US economy through the USD.
I think, if you're right, the Chinese are shooting themselves in the foot. They need people to feel comfortable with adopting the digi yuan as a stable currency for Belt and Road trade, and eventually much of world trade. And apart from the medium of exchange function, they want to promote it as a stable store of value, possibly by having it gold backed.
So why are they scaring the bejesus out of everyone with Xi's Wolf Warrior tactics? Threatening partners, foreclosing on dodgy debt, putting countries like Australia through the wringer, trade wars... Doesn't really help grow confidence in moving from USD to the yuan, does it?
In the old days, under Deng Xiaoping, they would be working on a charm offensive right now. Under Xi Jinping they're too overtly threatening, and it's developing resistance to whatever they propose.
