China Creates World’s First Major Economy Digital Currency

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After years of talking about the digital yuan, China finally moved forward with the project. The cyber yuan give Beijing power to track spending in real time and money that’s not linked to the dollar. China has always been a driving force in the world’s economy. Thousands of years ago it invented the first paper currency, and is now the world’s first major economy to go digital.

The cyber yuan comes in a time where Bitcoin and altcoins are riding high. More and more industries and governments are seeing the benefits of digital money, but China is the first country to make a big move. Cryptocurrencies have shown the world the way forward. However, they exist outside of the traditional finance system and are not legal tender like government-issued money.

Non-Decentralized Cyber Money

The cyber yuan is not decentralized like Bitcoin. It will be controlled by China’s central bank and issued by the government. The cyber yuan gives China an ample set of tools to monitor its economy and residents closely, something many have criticized. Compared to Bitcoin, the cyber yuan doesn’t offer anonymous transactions for the user.

According to official sources from Beijing, the cyber yuan is meant for internal and international use too. It is designed to be untethered from the global financial system where the US Dollar has dominated for decades. The digital currency didn’t just appear out of thin air. China has been considering it for years, and it’s the next stepping stone in the country’s digitalization. It is trying to get a centralized control over finances while getting a head start on future technologies.

What does this mean for Bitcoin? Well, nothing good for its fans in China, but overall, the digitalization is great. For years, China has leapfrogged much of the developed world including the USA in regards to digitalization. The move will solidify its position as the world’s leading economy, or at least that’s what experts believe. One thing’s clear – the yuan is now posing a serious threat to the US Dollar and may cause a shift in the way other governments see cryptos and digital money.

What Are the Benefits?

There are plenty of benefits of this move. Digital currencies provide access to the financial system to people who don’t have bank accounts. In a couple of years, digital transactions will total trillions of dollars in transactions every year, so they can’t be ignored anymore. China is simply keeping in touch with the times, even if the cyber yuan stands against everything Bitcoin is.

On the other hand, there will be privacy concerns. The transactions are not anonymous, which hasn’t stopped interest in the cyber yuan. People will still use it, and years from now, it will be in a much better position. Over time, those privacy concerns will be forgotten, although the concerns will remain in the expert community.

The digital revolution also gives China an insurance policy that even if the cyber yuan faces obstacles due to global regulations, it would still exist in the Asian sphere.

Overall, the cyber yuan is a great move forward to a digital future economy, making China the first country in the world to adopt it.

 

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April 7, 2021: • No Comments

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