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China’s new digital currency is similar to WeChat

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What China’s New Digital Currency Tells Us About a Cashless Future | WSJ

China's new digital currency is similar to WeChat

China’s new digital currency is similar to WeChat
CONTENT

  • China prepares to launch digital currency

  • The first sketches of the new APP hit the net

  • The digital yuan will be used like a fiat currency

International consortium of news organizations developing transparency standards.

China is actively working to launch its own digital currency, which will be fully controlled by the country’s central bank. Data miners managed to find the first screenshots of the future CBDC Paper bills and coins may be a thing of the past due to a new financial instrument – the digital currency of central banks (CBDC). As of … More, which have already hit the net. Users agreed that the design of the mobile application, which will support the circulation of digital money, resembles the AliPay payment system and the WeChat messenger, popular in China..

China's new digital currency is similar to WeChat

The Digital Currency Research Institute, a division of the People’s Bank of China (PBC) overseeing the development of the project, declined to comment on a screenshot that is unlikely to be the final version of the digital currency..

China is afraid of Facebook

 

Note that China is the first country in the world to launch its own digital currency. Unlike cryptocurrencies, which, by their nature, are decentralized and not subject to any central bank or other agency, CBDCs are completely controlled by the central banks of the countries..

China first started talking about creating its own digital currency after FacebookIn June 2019, Facebook announced preparations for the release of the Libra digital currency. The social network project immediately attracted attention … More announced its readiness to create a single global blockchain platform Calibra and to introduce stablecoins into circulation. Stablecoins – literally translated from English “stable” coins – continue to gain popularity in the digital asset market. With … More LibraIn June 2019, Facebook announced preparations for the release of the digital currency Libra. The social networking project immediately attracted attention … More. In fact, such a cryptocurrency could compete with all existing fiat money. Currently the number of Facebook users exceeds 1 billion..

Fearing a monopoly on the digital currency market, China decided to create its own CBDC, which would enter circulation like the fiat yuan. Testing of the digital yuan began last year. Several banks, as well as some large telecommunications and industrial companies took part in the pilot launch. Chinese government intends to launch digital yuan China’s financial regulator has been working on creating a digital asset for several years. During this time, a large number of … More were put into circulation by the end of the year.

Are digital currencies safe??

China's new digital currency is similar to WeChat

 

While China is actively introducing digital money into the country’s economy, other countries are in no hurry to digitalize their own money. For example, the head of the Central Bank of Russia Elvira Nabiullina has repeatedly stated that the introduction of the digital ruble is not planned. Nevertheless, the department is ready to observe and study the experience of other countries that are already using digital and cryptocurrencies. Venezuela is one of these states. The country has been using the Petro cryptocurrency along with fiat money for several years already. Despite the fact that Petro can buy oil, gold and other raw materials, there have been no significant improvements in the country’s economy. On the contrary, residents claim that it was the introduction of cryptocurrency that destroyed small and medium-sized businesses in the country. However, the country’s government is not going to give up the use of digital money..

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