China has always been one step ahead in digitalizing the day to day activities – one such activity is going about and shopping with an Alipay or WeChat Pay mobile app in Shanghai or Beijing which is simpler than carrying a wallet loaded with yuan bills. China is eager to carry out its highly game-changing digital yuan, paves the market in the production of digital currencies like bitcoin champion.
Some analysts think that digital yuan could boost the power of the government over the financial sector and maybe even change the global economic influence balance one day. However, governments worldwide are struggling to keep pace with the latest nature of money, launched bitcoin a little over a decade ago and turbo-charged by Facebook just last year China’s virtual cash is supposed to be an electronic equivalent of currency notes, or coins: the catch here is that this digital currency stays in your digital wallet and not in a physical wallet. Its value is mostly state supported. However, virtual cash would be cheaper and simpler to use than tangible money – and the Chinese government would also provide a degree of control over physical money that would never be feasible.