The renminbi could rival the US dollar as a leading international reserve currency despite obvious challenges, said Yves Mersch, a member of the European Central Bank's executive board.

Delivering a keynote speech on Wednesday at The Luxembourg Renminbi Forum, Mersche said that the currency's internationalization is just beginning, but it's moving fast.

"Clearly, having become an important trading and payment currency, the renminbi is now taking the first steps toward establishing itself as an international investment currency. If it can do so successfully, it might one day become a leading reserve currency," he said.