China Will Introduce First Digital Currency in the World

 

Thousands of years ago, when coins were used for as currency around the world, China had invented the paper currency. Now they are inventing Digital Currency

China is now set to become the world's first major government to introduce a digital currency controlled by the central bank. Subsequently, they will try to end American economic dominance in the world.

According to the Wall Street report, credit cards and payment apps have made somewhat virtual transactions. But China is focusing on the digital currency.

Crypto currencies such as bit-coins point to the digital future of cash. But not all of these digital currencies are part of the traditional global financial system, nor do they have legal support from governments.

China envisions a digital currency that will be controlled by its central bank, which will launch a new electronic currency.

With the support of Digital Yuan, Chinese government will also prevent a key factor in attracting bitcoin, namely the anonymity of the user.

Central banks around the world, including the People's Bank of China (PBOC) are considering developing digital currencies. Which will speed up local and international payments as well as make them cheaper.

The Digital Yuan will help t Chinese government track people's spending in real time. While this wealth will not be linked to the global financial system in which the dollar dominates. It will be possible to shake the pillars of American power.

The PBOC has been working on the Digital Yuan Program since 2014 after gaining the attention by public in Chine on bitcoin

The Digital Yuan is being designed as an alternative to paper notes and is not a substitute for long-term deposits in bank accounts.

Commercial banks will also play role in distributing digital currency to consumers. These banks in return will have to deposit the same amount in their reserves.

However, unlike digital currencies such as bitcoins, the block chain will not be used in the Digital Yuan. These will be distributed through ledger technology.

China has long sought to present its currency as a global alternative to the dollar. Digital Yuan can also help in achieving that goal, while preparing consumers in other countries to use the Yuan. ۔

The digital dollar is also being considered by the United States at the moment. Yet it is difficult to predict how long time it will take.