The introduction of digital yuan has the potential to have significant implications on the global financial system. Some of the potential implications include:

Increased Competition: Digital yuan may increasecompetition in the global financial system by providing consumers with more payment and transfer options and potentially lower fees.

Shift in Reserve Currencies: The widespread adoption of digital yuan may lead to a shift in the composition of foreign exchange reserves held by central banks, potentially leading to a decrease in the dominance of the US dollar as the world's dominant reserve currency.

Changes in Trade and Investment: Digital yuan may facilitate cross-border transactions and reduce the dependence on US dollar-denominated payment systems, potentially leading to changes in the patterns of trade and investment between countries.

Financial Inclusion: Digital yuan may increase financial inclusion by making it easier and more affordable for individuals and businesses in developing countries to access financial services.

Cybersecurity Risks: The widespread use of digital yuan may increase the risk of cyber attacks and financial fraud, requiring new measures to ensure the security and stability of the financial system.

Regulatory Challenges: The emergence of digital yuan may present regulatory challenges, particularly with regards to cross-border transactions and data privacy.

New Opportunities: The digital yuan also presents new opportunities for the global financial system, such as reducing transaction costs, increasing efficiency and speed, and fostering innovation in financial services.

The impact of digital yuan on the global financial system will depend on many factors, including the pace of its adoption, the regulatory environment, and the evolving needs of consumers and businesses. It is important for stakeholders in the global financial system to monitor and understand the implications of digital yuan in order to respond effectively to its impact.