The Rise of China’s Digital Yuan: What Does This Mean For The Future Of Currency?

Digital Yuan mobile Wallet App

Beijing – April 03, 2022 | Hamari Web News Desk | China is expanding its digital yuan pilot program to more domestic cities. The program, which allows people to use the digital yuan for activities such as shopping and dining, has been successful in over 10 places across the country. Recently, Beijing and Zhangjiakou were added to the program after being tested during the 2022 Olympic and Paralympic Winter Games.

Various modes of application have taken shape in the wholesale and retail, catering, tourism and payment of administrative fees industries. These modes apply to online and offline scenarios and can be replicated and promoted. According to a PBOC meeting on Thursday, digital yuan transactions in China amounted to nearly 87.57 billion yuan (13.78 billion US dollars) by the end of 2021.

Why digital Yuan is important for China

China has been making a big push to get its currency, the digital Yuan, accepted into the global digital economy. Recently, the Chinese central bank announced that it will start issuing digital Yuan. This is a very important step for China, as it will help the country to move away from its reliance on the US dollar and become a more important player in the global economy.

The digital Yuan will have many benefits for China. For one, it will make it easier for businesses and individuals to use the Yuan internationally. Additionally, it will help to improve the efficiency of China’s payments system. And finally, it will promote the use of digital currencies more broadly.

The Chinese yuan is going digital

This isn’t really news. We’ve known for a while that Beijing has been planning to launch a digital yuan, and the recent coronavirus outbreak has only accelerated those plans.

What is new, however, is the extent to which China is pushing for a digital yuan – and the implications this could have for the global economy.

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