The digital yuan starts working!
China is a land of contrasts. On the one hand, there is an extremely aggressive policy on digital assets, ubiquitous bans and restrictions. On the other hand, the active development of their own, unique state cryptographic solutions. We have repeatedly written that the government of this state is interested in creating a controlled digital currency. The digitized version of the yuan has been in development for a long time, but today it became known that the coin is going through the first tests. Next, we will tell you everything that is known about the first launch of the Chinese cryptocurrency. So read it carefully. So let’s get started.
How does it work?
To talk about development prospects, you need to discuss the basic concepts and understand: how this or that technology works. In the case of a Chinese digital asset, we are talking about a fairly advanced currency instrument. Despite the fact that the coin will be completely controlled by the state, it is based on a decentralized foundation. The current version of the project is built using a distributed registry. Which allows you to save time and labor of employees when performing the assigned tasks.
By the way, about the tasks. At the moment, the coin has already been used for transfers. More specifically, the digital yuan was used as a salary for employees from Xiong’an province. The enterprise for the protection and use of forest resources was the first in the province and the whole country. It was his employees who received special accounts, to which the first digital money was received today.
The details of the tests were not disclosed. However, we can assume that if the People’s Bank of the State talks about its decisions, the digital yuan turned out to be quite successful. At least at this stage. It is obvious that the asset will receive serious government support and will develop. But are there any prospects for such a controversial development? More about this in the next section.
What’s next for the digital yuan?
If we want to understand the future, we need to go back a little. It is necessary to recall the zeal with which the Chinese government imposed the use of its own cryptocurrency. Citizens of the state previously received special “envelopes” in which there were few digital assets. The intricacies of using the coin are discussed on specialized portals, and leading national economists see a great future in this currency instrument. Is it really? Most likely, the digital yuan will indeed be able to compete with the classic national currency. We have no doubt that the government and the ministries under its control will make every effort to ensure that their project receives the attention it deserves. Why well deserved? The digital yuan is a truly innovative payment solution, with its own technical advantages and features.
Also in favor of the successful future of the digital Chinese currency is the current policy in relation to the rest of the advanced assets. It is not surprising that the authorities simply want to “clear the front” for their decision. This is most likely the main reason for the total restriction of BTC, ETH and XRP. Such efforts are unlikely to be pointless. However, only time knows for sure. The main thing is to follow the current news of the cryptoindustry and stay up to date with all the news in the world of Blockchain and high technologies. Read our articles. We publish only high-quality, interesting material. Thanks for attention. Good luck!