The future of Digital Currencies is looking quite bright. The revolution ushered in by Bitcoin and other cryptocurrencies mean that governments are now serious about exploring the benefits of digital currencies.
One such country, which has been in the news in recent years has been China. It is a bit of an open secret that Bitcoin and Blockchain development, especially in the area of mining has flourished in China. Even when the world was coming to terms with the Coronavirus pandemic, China was quick to roll out its new state-sponsored crypto- Digital Yuan for internal use. In this article, we look closely at Digital Yuan.
We speak to experts to understand how it works and what implications does it have for the world economy.
Digital Yuan: What you need to know?
According to papers published by leading media publications backed by the Chinese government, a Digital Yuan is just like a physical yuan. China’s Central Bank, PBOC is leading the project. The rollout of the Digital Yuan looks promising especially when you take into account the intentions behind the same. China is looking to slowly make its economy go cashless.
The intention behind the same is to protect government control over the economy by keeping other elements like Bitcoin and Facebook’s Diem at bay. With the Digital Yuan, users will have the benefit of using their money in the same fashion as they do with Digital Wallets like Alipay or WeChat Pay. This will give Chinese authorities the insights they need to understand how finance is flowing through the economy. What sectors are benefitting and receiving most of the payments, and which sectors need more assistance.