The digital yuan is money that gives the Government the power to monitor spending in real time, and more importantly, has no connection with the global financial system dominated by the dollar.
Digital Yuan – Bitcoin and Altcoins
The digital yuan is a state-backed digital currency designed to track the movement of every penny, while Bitcoin is anonymous.
Apps like Apple Pay, Venmo, Paypal, and Google Pay make payments easy without using a credit or debit card broker.
In response, China turned the yuan into a string of numbers. A silhouette of Mao Zedong appears on the screen and looks like paper money.
A first for the big economy
A thousand years ago, when money meant coins, China invented paper money. Now the Chinese government is printing money digitally with the re-dream of a coin that could shake American power.
China’s version of the digital currency is controlled by the central bank, which will issue the new electronic money.
Beijing also positions the digital yuan for international use and designs it so that it is not tied to the global financial system that the US dollar has been king since World War II. China is embracing digitalisation in many forms, including money, to gain more centralized control as it takes a step into future technologies it sees ready to take over.
The pioneering of an authoritarian state and its rival in the US to introduce a national digital currency is pushing what was once a dangerous topic for cryptocurrency theorists to a point of concern in Washington.
Analysts and economists say digitization alone will not make the yuan a competitor for the dollar in bank-to-bank wire transfers. But the yuan, also known as the renminbi, in its new form can gain traction on the margins of the international financial system.
Josh Lipsky, now a former International Monetary Fund employee with the Atlantic Council think tank:
Anything that threatens the dollar is a matter of national security. This threatens the dollar in the long run.
Promoting digital yuan use
China already has 770 million mobile payment users.
To facilitate admission, China held free lotteries. 750,000 people won some free money in these lotteries. We are currently working on a method that will allow the application to run without an internet connection.
China will soon oblige everyone to use the digital currency, and with this trend, paper money will become obsolete.
China will know who paid, where and how much, and what it bought.
Sellers can avoid transaction fees
Problems with cash are eliminated.
Payment is made instantly.
All kinds of privacy concerns.
Does getting rid of the dollar create a national security problem?