The digital yuan returns! What is known?
Earlier, we have repeatedly written that China is preparing a digital analogue of the state cryptocurrency. An internal digital coin was planned for a long time, but was constantly postponed until better times. Apparently, these times have come. After all, in the provinces of China, testing of a digital yuan is beginning. Next, we will look at everything that is known about this large-scale project. So, without further ado, let’s get started.
Basic theory
First of all, you need to understand the context of what is happening. Let’s start with the reasons why the start of the domestic cryptocurrency was constantly postponed. Of course, the main reason can be considered the epidemic of coronavirus infection. COVID-19 has dealt a severe blow to the country’s economy. The funds had to be redistributed, giving preference to urgent assistance to citizens. All ambitious, but long-term projects faded into the background. Among such “forgotten” was the digital yuan. They decided to move their own cryptocurrency until quieter days. And at the moment, digital currency tests have resumed.
The state is sponsoring the development of a digital coin, and major cities are beginning to openly support the integration of this tool into their own ecosystems. So far, only representatives of Shanghai and Beijing have spoken, but this is already enough to speculate about the future of the digital yuan. These cultural and economic centers are poised to integrate the digital yuan into state and regional institutions.
Recall that the project was named “sovereign digital currency”. To support and accelerate the launch of the coin, the mayors of the cities announced that they are ready to create separate demo platforms. Support projects will allow each investor to be convinced of the prospects and profitability of the sovereign currency. At the moment, tests are also being carried out, during which so-called “red envelopes” are handed out to residents of China. These are, in fact, blocks of shares that contain 200 tokens each. These users will be the pioneers in the use of a fundamentally new solution. The total investment has already exceeded RMB 20 million. Which is, at the current exchange rate, $ 3 million. But when to wait for the official launch of the Chinese cryptocurrency?
When will the digital yuan start working?
The authorities have not yet given an unambiguous answer to this question. Nevertheless, with such a pace of work, we can conclude that we will see the start of the project in the near future. It is possible that the first launch of the asset will take place in 2021. Of course, this is a large-scale and voluminous work, but if China continues to develop the project with the current activity, the launch will be carried out in the near future. We recommend all our readers from China to take part in the distribution of cryptocurrency, since this project obviously has a great future. Imagine that a digital asset can completely replace the usual fiat units of calculation. This is an amazing prospect that is developing today. It is also possible that many Asian and European states will follow China’s example.
For example, at the moment, cryptocurrencies are actively developing in Singapore and other leaders of the economic market in the region. So the ongoing events definitely concern even those who are not related to the Celestial Empire. It is now important to stay up to date with the latest developments in the blockchain world and the cryptoindustry. Follow all the news with us. We publish only high-quality and interesting material. Thanks for attention. Good luck!
