Many believe that the future of the world economy lies in cryptomonies. This possible reality has been denied by many countries with power in the world, for China the picture is different. And as it has always bet on this technological advance, China launches expansion of the tests of the digital Yuan, its greatest advance in this sense.
China is known for malfunctioning the different new technologies that are emerging in the world. Well, its way of applying these technologies in society is different from the Western way.
And in the case of the crypto currencies, the Asian giant was not left behind in making incursions in its own way into the crypto ecosystem.
The digital yuan will be different from Libra
China and the Digital Yuan
China’s incursion into the world of cryptomonies is viewed with suspicion. This, as updates and advances by the Asian country are generated.
For, although many analysts consider it positive that China has decided to investigate on its own, in order to create its own cryptomoney. The truth is that the reality is more complicated.
The country’s Ministry of Commerce said on Friday that the digital currency, called DC/EP, would be tested in the main cities of the most developed regions. It is also intended to reach poorer regions, only if that region manages to meet the necessary requirements.
DC/EP stands for Digital Currency/Electronic Payment. And the Chinese government has been trying to launch this digital currency into its economy in a feasible way for more than 5 years. In search of replacing the country’s physical currency (the Renminbi) with this new cryptomone currency.
The Chinese Ministry of Commerce added that the use of this innovative technology, aims to boost the nation’s economy. Thus, China launches the digital yuan.
„Digital Yuan“ seeks to help retailers in China
The reality of the alleged Chinese cryptomone
However, there is a raw truth hidden in this news that seems positive. And it is based on the functioning of the digital Yuan, for it promises to be a false cryptomoney.
To understand why this is so, we need to go back to the basics of crypto-world concepts. Because, the revolutionary idea that gave way to the technological advances in crypto was the function of decentralization and that cryptomonies are not regulated by financial entities, nor governments.
However, the digital Yuan does not meet these two essential factors of the cryptosystem. Well, the members of the Chinese economic bureau assert that the digital Yuan will be fully controlled by the Chinese government.
It should also be noted that in this case it will be the People’s Bank of China that will also have the absolute power to create or destroy the supposed Chinese cryptomoney.
For the People’s Bank of China has begun working with several companies, owned by Tencent, to test the digital Yuan on supermarket platforms. So that food purchases can be made with this crypto currency, this according to reports from CoinDesk.
Do you think that the digital Yuan should not be called crypto currency?