The digital yuan, china's digital currency

moneda digital

We talked months ago about the digital yuan, the digital currency that China wants to implement in the country, a currency that has already begun to take its first important steps.

The success of a pilot in the city of Suzhou near Shanghai has now been announced, where 7 euros in digital currency was delivered to 181,000 consumers, free money in digital wallets to spend in specific stores for five days, from 1 to 5 May.

It was just a test that was part of a larger one that engulfed 500,000 consumers in 11 Chinese regions and was tremendously successful.

To use the money users have to download an app, a digital wallet. With it, you can buy in thousands of participating stores and receive discounts.

The technology behind it is an authoritative blockchain, which means that Banco Popular decides who can use it.

But this currency will not only be used within China, they are preparing a platform to make the currency internationally viable, although that step will be slow and very controlled.

In the West, things are slowing down. They are more concerned with privacy when all transactions are publicly visible in the blockchain, and about the effect on retail banks.

When Can I Buy, Use, and Trade China's Digital Yuan?

When it comes to advantages, we have:

 There is no service fee.
– The speed of payments can be faster than with traditional methods.
– No need for banks.
– It is supported by the government (the issuance of digital yuan is the same as the issuance of cash in circulation).
– It would not depend on the dollar in international transactions, it would have more freedom and SWIFT would not be necessary.

On the other hand, countries that do not adopt digital currencies might find that their central banks lose control over monetary policy over cryptocurrencies. The world of the economy would separate between adherents and non-adherents of this technology.

What is clear is that the West has to put on its stacks to create its own digital currencies if they don't want it to be only China that dominates this sector in a short time.

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