Recently, China’s digital money initiative continues
to attract enthusiasts of the cryptocurrency sector. Although there are reports
that the Chinese Yuan-supported cryptocurrency is ready, there is no certain
information. However, it is expected to be released in the near future. In this
article, we have explained three facts you need to know about China’s digital
money. Have a pleasant reading.
Anyone who has done a little research on
China knows that e-payments are not separate from the country’s economic
structure. So the biggest question in mind is why a digital money initiative is
taken in a country where electronic payments are already common.
The answer is hidden in the statement of Mu
Changchun, a member of the People’s Bank of China (PBoC). According to
Changchun, with the government-funded cryptocurrency (CBDC), which will soon
enter the market, people will be able to integrate cryptocurrencies in their wallets
with their IDs. In this way, the authorities will be able to follow the
financial transactions of Chinese citizens.
Fear of Libra
China had been on the agenda in recent
months because of Libra. Immediately after the allegations that the Libra
project would be launched in 2020, China quickly announced that it would launch
its own cryptocurrency.
China abstains from Libra, because of the
fact that they are extremely worried that it will function as a payment system
in the country. They think that the introduction of a cryptocurrency, such as
Libra, could harm capital control efforts.
Not a Cryptocurrency
The third and final information is quite
interesting. The cryptocurrency that will enter the market will not have
exactly the status of a cryptocurrency. The People’s Bank of China will most
likely fix each digital yuan to a real one and distribute it to banks. In this
respect, it is expected to be a Tether-like crypto. Users who want to buy the
cryptocurrency will be able to obtain it from these banks.