How digital yuan is replacing the traditional yuan in China.

Spread the love

It is not bitcoin, but rather digital money.

Most of us have been paying for goods and services online using services like PayPal and Skrill, but this does not indicate that we are using digital currencies. China, on the other hand, wants to fully replace the yuan in its physical form with its digital currency, the digital yuan.

Unlike Bitcoin, Ethereum, and other cryptocurrencies, the digital yuan is a digital currency plain and simple. Instead of promoting a decentralized and anonymous system similar to that of crypto, the digital yuan is based on a centralized system controlled by the People’s Bank of China. In this system, the Chinese government can track every digital yuan movement, allowing it to see how people are using the currency.

The digital yuan would work similarly to other automated payment systems. Users can perform purchases that do not need internet access by using an app or a wallet. The app has already been downloaded by over 100,000 users. To test the unit, early adopters were granted a small number of digital yuan, which they used to shop at places like Starbucks and McDonald’s.

The paper yuan will be replaced by digital yuan at some stage in the future. Any physical yuan issued will be cancelled along with any digital yuan issued, potentially halting the introduction of new currency into circulation.

RECOMMENDED READ:  Here's likely an alert for entering XRP purchase order

China also intends to extend the new digital currency to other countries, allowing businesses and customers to make foreign purchases more quickly and cheaply. The People’s Bank of China has been working on the digital yuan since 2014, when one Bitcoin was worth less than $1,000.

China isn’t the only country working on digital currencies. More than 60 countries are currently creating or researching the prospect of introducing their own digital currencies. Sweden, for example, has already played with a digital krona. The Bahamas have also issued a digital currency known as the Sand Dollar, which is open to all people.

As for a digital U.S. dollar, treasury secretary Janet Yellen thinks “it makes sense for central banks to be looking at it.” Jerome Powell, the federal reserve chairman, has also commented on it, stating it is a “high priority project for us.”

Image credit: Li Hao/Global Times

 180 Interactions,  4 today

READ ALSO:
Decode messages embedded in Nvidia’s GTC keynote to win an RTX 3090.

Which is more difficult: finding a GPU in stock or deciphering Morse code? Nvidia has announced a treasure hunt, with Read more

Firefox will cease to support Amazon Fire TV and Echo Show systems in few days.

The browser's support will be discontinued on April 30th. Starting on April 30th, Mozilla will discontinue Firefox support for the Read more

Web 3.0: The Future’s Decentralized Internet

Few technologies have come close to matching the ease and importance that the internet provides to billions of people around Read more

Alibaba reportedly fined $2.8 billion in a Chinese antitrust lawsuit.

The investigation focused on Alibaba's "monopolistic practises." After completing an antitrust probe into suspected monopolistic activities, Chinese regulators slapped Alibaba Read more

How Biden plans to us his first budget with US factories to combat chip shortages.

It is investing millions of dollars in domestic manufacturing efforts. To address chip shortages, President Biden is not depending entirely Read more

NASA has postponed the Mars helicopter ride until at least April 14th.

NASA placed the flight on hold after a test posed enough concerns. To see NASA's Mars helicopter in motion, you'll Read more

The Google Pixel Watch leak provides us with our first look at the much-anticipated smartwatch.

Take a look at this Apple Watch competitor first. Whispers about Google's smartwatch began to circulate in 2018, but there Read more

How Samsung attempts to convert iPhone owners into Android adopters with the Galaxy test drive mobile app.

For iPhone users who want a "taste of Samsung" While Samsung's Galaxy S21 lineup is selling better than the previous Read more

Apple takes action to prevent the use of a bottled water brand that is almost identical to its trademark.

It seems to be somewhat straightforward. The Apple logo served as a model. Logo trademark disputes are common. Much of Read more

Despite cancellation rumours, Google says the Pixel 5a 5G will be released this year.

However, it will only be accessible in the United States and Japan. Google has confirmed that the Pixel 5a 5G Read more

Leave a Reply

Contact Us