Friday, December 3

China’s plans to win the global race for digital currencies

The Chinese authorities will test the impact of the eCNY on their monetary policy and financial markets, he added. Finally, Yi also stated that eCNY aims to meet the need for domestic retail payments, as cross-border digital payments involve more complicated issues, such as fighting money laundering.

According to what the Reuters news agency reports, the director general of the digital currency institute of the People’s Bank of China, Mu Changchun, it is not known when the digital yuan will be officially released. However, this official assured that so far 1.5 million businesses accept payments through eCNY wallets (such is the official name of the digital yuan). These include some items such as transportation, retail, and public services.

If you count one eCNY wallet per person, it can be said that approximately 10% of the population of China already uses the digital yuan. According to data from the World Bank, 1,400 million inhabitants currently reside in this nation.

What is a digital yuan?

The digital yuan is a CBDC, that is, a central bank digital currency or central bank digital currency. It is a cryptocurrency issued by a centralized entity, such as the central banks of the various countries.

In addition to modernizing the monetary and financial system of countries, CBDCs can represent an alternative to “compete” against Bitcoin (BTC) and other cryptocurrencies, at least in some of their uses, such as for making payments.

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