As several countries have taken to exploring the various digital currencies, in and across the world with several the Central Bank of respective countries the Central Banks have been setting up various rules and regulations and are trying to take required measures to keep a check, and at the same time make full use of the digital currency to make money.
They are trying to set up ways of trying to make use of this money in the future projects. This has led to an emergence of a huge competition, in that, China has taken a complete lead crushing all other countries. Since China has a huge number of applications, and an immense amount of tech sharks, it has been really easy for China to make a drift and attain the topmost position in the crypto market.
Several analysts have suggested that if China happens to make complete usage of this, the amount of the Yuan will significantly increase in comparison to the US dollars. Several countries have started experimenting on the CBDC, as has the Bank of Japan.
They have been looking into this opportunity, and are trying to make complete use of it. They are basically experimenting to check the technicalities as well as the functioning of the CBDC. China and the US are combating very closely as far as the digital currency is concerned. One makes a move, the other is ready with the next move. The Federal Reserve Bank of US is trying to develop a digital dollar prototype which they are planning to reveal by July.
The US is speeding up all their digital assets programs, and at the same time, the Central Bank of China has performed live pilot testing of their program which is based on digital testing, in and around China. China houses several self-driven R&D teams who have performed several ways to reduce all sorts of financial risks. A huge part of it has been affected by the pandemic leading to a lot of negative impacts on the currencies.
China has mentioned that they have an opportunity, as the western countries might have to go through a longer process while promoting their digital asset, they might need a lot of approvals from both the businesses and the public. Given the tech advancements and the network availability there is a huge chance that China might end up being the first country to launch a digital asset.