Sunday , May 16 2021

Bitcoin is “pushing” the yuan into the digital world

Wang Xin, director of the research department of the National Bank of China, told reporters that the market interest in the digital yuan is “very strong and everyone is closely monitoring the situation,” the portal reports.

“On the one hand, this (interest in the digital yuan) is associated with more and more central banks in the world involved in the development of domestic digital currencies.” . CNNBC.

Starting studies on its own digital currency in 2014, Beijing began to suppress the use of all cryptocurrencies, including bitcoin. Cryptocurrency trading has been suspended on about 100 stock exchanges in the country since 2017, in accordance with regulations on fraud and money laundering.

The National Bank of China plans to prepare a national digital currency for the 2022 Winter Olympics.

As it is stated, the new currency which does not have an official name, but is known under the abbreviation DCEP (Electronic payment in digital currency, in translation digital currency for electronic payment) will have some characteristics of cryptocurrencies.

The digital yuan should replace cash in circulation. It will be linked to the owner’s smartphone number, where transactions will take place via the app.

Users will be able to transfer money between accounts by tapping the phone screen.

Such currency will be legal tender and can be used without the participation of the bank as an intermediary.

Digital Chinese currency testing programs have been in place in major cities across the country lately. During the period around Chinese New Year in February, authorities distributed more than 40 million yuan ($ 6.2 million) in digital currency as part of the lottery.

According to Wang, testing is becoming more intense and extensive.

Last year, it was the fifth most common currency for global payments. However, trends are in favor of the Chinese currency and are moving towards that the yuan is becoming the leading international currency.

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