China leads with national digital currency

Yet no major power is with China. Its initial steps may indicate where the rest of the world goes with digital currencies.

“It’s about more than just money,” said Yaya Fanuci, a partner at the Center for Economic and Financial Power, a think tank, and a writer. Recent paper On Chinese currency. “It’s about developing new tools to collect data and leverage that data so that the Chinese economy is more intelligent and based on real-time information.”

Although the Chinese government has not said when and when it will officially apply nationwide, several officials have mentioned getting ready for tourists arriving for the 2022 Olympics in Beijing. Recent articles and speeches by officials of the People’s Bank of China, which is the country’s central bank, underscored the project’s ambitions and desire to be the first.

“The right to issue and control digital currencies will become a ‘new battlefield’ of competition between sovereign states.” An article In China’s finance, the central bank magazine, in September. “China has many advantages and opportunities in issuing fiat digital currencies, so it should provide momentum to seize the track first.”

The People’s Bank of China did not respond to a request for comment.

Development of a national digital currency began in 2014, when the People’s Bank of China set up an internal group to work on one, shortly after Bitcoin increased Meditation in the country. In 2016, the central bank created a division called Digital Currency Institute. Last year, it started eCNY trials in Shenzhen, Sujoy, Jiogan, and Chengdu cities, according to research by China Global Capital, a financial investment company.

Those invited for the test via a lottery on WeChat or other applications were able to click on a link and get a balance of 200 electronic yuan, which sometimes accompanied Mao on a photo of an old bank’s Chinese note The face of Zedong was displayed in the bank app. To spend money, users can use an eCNY app to scan the retailer’s QR code or produce a QR code that the retailer can scan.

The design of ECNY borrows only some minor technical elements from bitcoin and does not use it So-called blockchain technology, A bookkeeping-like system, on which most cryptocurrency relies, People’s Bank of China officials have said.

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