On one hand, the prevalence of cryptocurrency is increasing very fast. Meanwhile, China said that it is going to launch digital currency very soon for its citizens. According to a Wall Street Journal report, the currency has been named Digital Yuan and will be regulated by the Chinese Central Bank. If we look at the history, in 806 AD, China brought the paper currency for the first time in the world. Historians say that China’s Chinese dynasty first issued paper money in 1023 AD.
However the digital yuan will be completely different from cryptocurrencies like bitcoin. The central bank will keep an eye on this currency, in such a way it will have more transparency and credibility. According to a Times of India report, China has been working on its digital currency since 2014. This was the time when Bitcoin was being discussed globally. China is not the first country in the world which is working towards its digital currency. Many of the world’s central banks are working on their own digital currency. The US is working in this direction with the help of MIT, while the Reserve Bank has on several occasions expressed its opinion about digital currency.
Pilot project in 6 cities
It is also being used as a pilot project in many parts of the country. The People’s Bank of China implemented digital currency as a pilot project in six major cities only in 2020. One of these cities was also Hong Kong. Under the pilot project, transactions worth $ 200 million or 1500 crore rupees have been done so far. In many reports, it has been claimed that in view of the increasing craze of digital currency, the Central Bank of Japan, Bank of Japan is also making rapid strides in this direction.
Affected by cryptocurrency but not cryptocurrency
Experts say that the digital yuan is largely influenced by cryptocurrency, but it is not cryptocurrency. It is not priced in the block chain. This is a completely different concept. To use it, users have to download the application and funds can be deposited in it. There will be unique QR code for every user. Through that, there will be buying and selling. All transactions will be done through that.
Digital economy’s ambitious dream
In the long term, China’s objective is to completely transform the economy into a digital economy. China wants to create an economy in which there will be no space for cash and quoin. There is a plan to achieve this goal with the help of all the banks there. If a bank wants a digital yuan, it must first deposit cash in PBoC and a digital yuan equivalent to that value will be issued to it. Monitoring will be done on every transaction.
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