No: Digital yuan is not cryptocurrency
The digital yuan is about to become reality. Is this the new Chinese lucky coin ?. The Asian country is used to banning new technologies and, shortly thereafter, releases its own national version, modified to maintain its own control and oversight. There is no Google in China, but Baidu. There is no WhatsApp in China, but it has WeChat. It doesn’t have YouTube, but it does have Youkan. Weibo instead of Twitter, QQ instead of Facebook Messenger and Digital Yuan instead of Bitcoin.
Digital Yuan Is Not Cryptocurrency: E-Yuan, Digital Renminbi, CNY Digital, E-CNY …: What Is It?
The invention has a wide range of names, but a common goal: control and monitoring. China has finalized the launch of its own CBDC, Digital Yuan. Central Bank Digital Currency (CBDC) uses an electronic register or digital token to represent the virtual form of a particular country (or region) fiat currency. One CBDC is focused; It is issued and regulated by the competent monetary authority of the country with hokk finance.
Some argue that the latest restrictive measures are trade against China (Finance Blocking is a recent example) and cryptocurrency mining has led to a recent drop in the value of Bitcoin and other cryptocurrencies. While questioning whether cryptocurrency volatility is a sign of underlying weakness or a roadblock, experts consider Beijing’s war on BTC (and its mining, recently banned in the country) not too much. It is a symbol of China’s efforts to hatch its own innovative electronic currency, digital yuan or e-yuan, and restart the international financial system.
The People’s Bank of China (PBOC) aims to become the first major central bank to offer digital currency. Although its Western counterparts have taken a more cautious approach (Europe is already managing the possibility of taking similar steps with the digital euro), PBOC has conducted experiments in several major cities, such as Shenzhen, Chengdu, Shanghai and Hangzhou.
Does the digital yuan work to further regulate Chinese citizens?
The benefits of electronic currency are immense. That too for a country like China. As more and more transactions take place with a centralized digital currency, the government will gain greater ability to control the economy and its residents.
The start-up is also seen as part of Beijing’s push to weaken the US dollar, and the Washington government in return. China believes that internationalizing the yuan can reduce its dependence on the dollar-dominated global banking system.
The warning in the Western governments was the threat posed by the digital yuan (which may leave China out of the scope of international financial sanctions) , a topic of discussion at a G7 meeting in Cornwall, England last month.
The People’s Bank of China published this week a white paper on e-CNY or digital yuan (or founding document).
When will the digital yuan be released?
Following the success of e-commerce platforms Alibaba, Tencent and Baidu, China began exploring the concept of sovereign digital currency in 2014. It has already distributed nearly 200 million yuan ($ 30,7 million) in digital currency as part of pilot projects across the country. Your Digital Currency Electronic Payment System (DCEP).
People’s Bank of China (PBOC) has selected reputable foreign brands such as Starbucks, McDonald’s and Subway to participate in the initial trial with Ant Financial, Tencent and 19 local restaurants and businesses.
Digital Yuan: For what? White Paper E-Yuan
Among the objectives of the Chinese government’s claim to achieve with the digital yuan are the following:
Ensure financial inclusion
Provide public interest digital cash while reducing physical cash use. Digital Renminbi’s holdings do not receive interest.
In theory, you don’t have to be a bank account holder to buy and sell digital yuan. A phone number is enough. The Chinese government has labeled the system a little more conspicuous with oxymoron anonymity. Chinese authorities already have the ability to track payments and hopefully this will continue.
5.340 billion RMB (US $ 70.75 billion) of 34.500 million transactions processed. This predicts an average turnover value of RMB 488 ($ 75.47), less than half the average in October last year.
China believes that bitcoin is a threat: Why?
The watchman .
« All central banks want to regulate cryptocurrencies: PBOC, US Federal Reserve, European Central Bank,” he says. Some countries may not care much, but China is taking it very seriously.
“This is another reason to regulate cryptocurrencies: to protect consumers. Investors without information can lose a lot of money.
Christine Lagarde: “It’s been nine months since we published our report on the digital euro .
China and the Bull Run 2021 Bitcoin
This week, Fan Yafa, deputy governor of the PBOC, reiterated the concerns of the Asian country’s government about the threat posed by these digital currencies developed outside the regulated financial system . “We care a lot about this, so we’ve taken some steps,” the fan said.
Elon Musk hinted that Tesla chiefs would not allow Bitcoin to buy their cars. This has added to the elements of technical analysis, and some of the growing exploitation of China is pushing Bitcoin to support $ 30.000.