On many occasions, news of the possibility of the digital yuan being launched was released by the Chinese government, which reported that it would prioritize this option over others who had planned it due to the Covid-19 global pandemic.
Despite the great effort that the Chinese government has made to ensure that its people do not have more problems than they do, it has spent vast amounts of paper money to prevent the lack of money.
However, they do not exclude the near possibility of Use the digital yuan and thus upgrade to using virtual currencies for all types of transactions and optimize the marketing of their products worldwide.
They are currently investigating how this type of currency can be strengthened so that it is widely accepted and can be used daily, quickly and safely by all sectors.
This would replace the currency exchange with virtual currencies that could gain ground in terms of general acceptance due to the current pandemic. With this in mind, the Chinese government is accelerating its plans, which will result in these new scenarios being presented publicly.
New measures in the face of similar financial crises
China already when it suffered an economic depression for those 2008, used a currency aid method for his citizens, but this time she studies it to do it through digital yuanThis would be an innovation and an immense opportunity to promote your new currency style.
The government could use the digital yuan to monitor the use various provincial governments could give it, because corruption is also a reality in China.
This means that if the government imposes this new modality, corruption can be minimized and thus benefit both the country’s administration and the Chinese people, who must achieve these resources for their own benefit.
In this way, it wages war on corruption and does not allow resources to be diverted to the personal interests of the provincial leaders in their favor or in their vicinity.
The challenge of launching a digital yuan
Very little information is available about it, the design, the database, and others, although the government has been talking about implementing blockchain technology since last year and then the news about the digital yuan.
There are two types of blockchain worldwide that have been adopted by large companies: one is the blockchain free and without permission, uncensored, open to everyone, free from regulatory oversight; On the other hand, there are patented, authorized, controlled, monitored, centralized blockchains that are able to absolutely track all transactions and record them transparently at all times.
In the case of China, the government plans to spend a substantial amount of money on the order of China $ 3.6 trillion that they would be distributed in the different provinces, but in reality these funds, which the government once distributed, have not fully received the projects presented, which means that they remain on the streets with the corrupt people on duty.
So the new implementation of the digital yuan with a blockchain system can track delivered resources by the government and not allow corruption to take over.
Currently, many governments, not just China, are considering the possibility of spending digital currencies that are introduced by their central banks. Even some nations are expected to have this type of currency in about three years.
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