Digital Yuan to help the Chinese government with Central Bank’s Digital Currency program - TCR

• Digital yuan has the potential to change how a superpower like China functions and runs its economy
• People will soon store one-third of their wealth in the Central Bank’s Digital Currency program.
• The digital central currency will not be similar to Bitcoin as it will be controlled by the government 

The Chinese government plans to launch its own digital currency next year. With a prototype for the masses within the next few months. Moreover, the higher control over its digital currency will spur demand for cryptocurrencies as well. The path developed by a certain coin will be easy to track. Subsequently, it will provide more control over the economy and further establish its power and status. Digital Yuan is on course to change the way fiat currency is looked at. 

Yuan is disruptive – be it fiat or digital 

The world’s third largest country has enormous amounts of receipts and payments to be made. It is imperative that other countries will soon follow suit and establish it’s own digital currency. The country will have a large amount of money in circulation. Superpowers will not be able to undermine the power of digital Yuan. It is bound to remain strong given its digital form. 

The government will soon have control over the citizen’s spending behavior. By regulating the demand and supply of its digital currency. China will soon launch its Central Bank Digital Currency program, as it continues to impose bans on other cryptocurrencies. It is in stark contrast as the government has put a ban on mining and trading cryptocurrency. But plans to launch its own digital currency.  

Powerful domestic financial institutions 

One of the major reasons for launching a digital currency is strengthen the financial institutions in the country and empower them with regulation and supply of currency.

Given the dominance of the government structure and policies in the country, citizens will be compelled to store a part of their wealth in digital currencies. 

The Digital yuan comes with a lot of promise and its central control takes away the unique feature that cryptocurrencies like bitcoin have, i.e., they are devoid of a central authority. Moreover, banknotes and coins will be digitized with the implementation of digital yuan.