The China-led Asian Investment Infrastructure Bank (AIIB) is a symbolic institution with no real significance for the global financial system, according to some economists.
"We keep hearing that this bank is an unprecedented move by China, we've never seen anything like this before, it represents a dramatic change in governance of the global trade and capital flow regime - that's all nonsense," Michael Pettis, finance professor at Peking University, told CNBC on Thursday.
Many experts have said the bank is a threat to America's current dominance within international financial institutions like the World Bank. 57 countries are founding members of the new bank, 37 of which are Asian countries, China announced on Wednesday. The U.S., Canada and Japan are the sole Group of Seven (G-7) countries that remain absent.
"I think this whole discussion of the AIIB has simply been overblown," said Fraser Howie, managing director at Newedge Singapore. "If China is trying to use this Trojan Horse to undermine the U.S. dollar and take its rightful place in the financial world, it's just not going to happen using [the AIIB]."