You have heard of many cryptocurrencies such as bitcoin, ethereum, dogecoin, litecoin, Shiba Inu, etc. . Have you heard of the digital yuan that China recently launched? They also called it digital currency. You can invest in digital yuan using the trading platform
What is the digital yuan?
The digital yuan is a new digital currency recently launched in China that will replace physical Chinese banknotes and coins with a digital currency. The country’s main motto is to create a digital China where people can transact easily with just one mobile app where you don’t need an internet connection. And the government will track all of your transactions, no matter how big or small.
Is the digital yuan a type of cryptocurrency?
No, the digital yuan is not a type of cryptocurrency. And this is the inspiration of cryptocurrency, and many other countries are also working on launching their digital currency. However, the time is not specified and China is the first to launch this digital yuan in China.
When cryptocurrency first became popular, many people started using it for trading illegal goods and services, tax evasion, etc. The central bank of each country was very frustrated because they were afraid of losing the value of their national currency. As a result, many central banks have started banning crypto. China also banned crypto because it has no trace of money, and that’s why they launched digital currency so that they can track every little big transaction of a citizen, and no one can there escape.
Dots make it different from cryptocurrency.
There are the following points which make the digital cryptocurrency of Chinese digital currency given below:-
- The digital yuan is purely worked on the centralized system as it was started by the People’s Bank of China (the central bank of China) and is in the custody of the Chinese government. China banned cryptocurrency from tracking people’s spending, and now they launched digital yuan, and it’s easy to track every citizen’s spending. But cryptocurrency is not in the custody of the government or central authority of each country as it was designed to remove third party control.
- The digital yuan is legal in China because the Chinese government initiates it. It is obvious that if the government makes a decision, it is a legal decision. All control of the digital yuan is in the hands of the Chinese government. But cryptocurrency is uncertain and not legal tender. In some countries, the government tries to make it legal tender as fiat currency, but some countries restrict it.
- The value of digital yuan is fixed as renminbi, and it will not go up and down without permission from the People’s Bank of China or the Chinese government. The central bank or the government has the right to fluctuate the value of the currency depending on the circumstances. But the value of cryptocurrency is out of control because no one tracks it or controls it, and it all depends on the belief of people’s minds.
- Cryptocurrency is a currency that we can use all over the world, and anyone in the world can trade it easily, except it is not banned in the country. The value of each cryptocurrency will remain the same in all countries because it is a global currency. Yet, the digital yuan is in the initial stage, so it is now a national currency, which means that only Chinese citizens can use this currency, and no one else can use it. The digital yuan app is now available in China’s national digital stores on all mobile devices, and people who have a bank account in China can use the digital yuan.
- Cryptocurrency privacy is public because it runs on the blockchain system, and all transactions become public on this platform where anyone can see the transaction. But the digital yuan is a private digital currency that only the government and central bank of China can see transactions, and no one else is allowed to see.
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Is The Digital Yuan A Type Of Cryptocurrency? – Tech Tribune France
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