The use of China’s digital currency has been successful in its era. China started this experiment a few months ago. It was used in four cities of China. According to a recent report, more than $ 300 million has been transacted in those cities through the digital version of the yuan (Chinese currency). It has been discussed in the financial world that through its digital currency, China wants to challenge the dominance of the US dollar over the global economy.
It is now reported that China is preparing to implement this currency in the whole country. It is intended that the digital version of the yuan become a major currency before the European Central Bank brings the digital version of the euro to market. China has called the digital yuan the currency of the future. He claims that using it will not only make shopping easier, but it will also be more secure. Chinese officials have also claimed that this currency will also help those who do not have bank accounts or who are deprived of traditional financial services.
According to experts, most of the transactions in China still take place through digital medium. But this is mostly done through private apps. That is, it is outside the government. With the use of digital currency, the entire transaction will once again come under government purview. Then from this, the government will also be able to continuously get information about where a person is at that time and in which things people are spending their money.
That is, the structure of Chinese digital currency is completely different from other experiments in this field. The first widely discussed digital currency was Bitcoin. Decentralized blockchain systems have been used in all such experiments. This technique keeps transactions out of the control of an individual or organization.
Professor Frank Xi of the University of South Carolina of America has said that China’s digital yuan will further strengthen government surveillance and government control over the economy and society. This is the reason why the Chinese government is pushing forward efforts to implement digital currency.
Some Chinese analysts are of the opinion that if the yuan starts to become widely used, it will help China break the dollar monopoly. This will increase the use of the yuan internationally. The current international financial system is dominated by the American system.
All credit card systems are also US-based. Last month, Hong Kong administrator Carrie Lam reported that the US sanctions imposed on her had resulted in her not using her bank account. China wants to change this situation.
But analysts say that China’s digital currency came into common use, there are many problems in this way. People in the outside world will adopt this currency, it is not easy. Due to the Chinese government’s control over the financial system, the suspicion about this currency is very deep in the world.
According to People’s Bank of China, China started work on the plan to introduce digital currency in 2014 itself. This year, research was carried out for the first six years of its use.
According to tech experts, some parts of blockchain technology have also been used in Yuan Digital. In this, every transaction is recorded in a digital ledger (book) and the entire account is kept there. China is hopeful that with its increased use, even a small amount of cash transactions will be eliminated in China. Online payment services have become popular in China in recent years. The most popular among them are Eli-Pay of Ente Group and WeChat-Pay of Tencent Group.
According to experts, due to their increasing popularity, the Chinese government feared that all financial transactions in the country could go into private hands. Therefore, he has taken his break as Digital Yuan. Seeing how successful this experiment is, the eyes of all over the world are fixed.