What is a Digital Yuan? The Digital Yuan is the digital version of the Yuan, the fiat currency of China. In this article, you can find answers to frequently asked questions such as what is the Digital Yuan, what is it used for, why it emerged, and how is it different from crypto money. As Kriptokoin.com, we have prepared it for you.
China’s fight for cryptocurrencies
China is constantly on the agenda with its distance and pressure from cryptocurrencies and blockchain technology. The Chinese government has repeatedly stated that user funds invested in cryptocurrencies will be restricted and the negative aspects of crypto mining. Crypto miners operating in the country left China and took refuge in countries like Kazakhstan, following repression and prohibition moves that went into effect in 2021. Due to these repressive policies of the country, many analysts suggest that the Digital Yuan project was created to issue a currency opposite to Bitcoin.
What is a digital yuan? What are its features?
Digital Yuan is a project developed by the Central Bank of China. The project aims to create and circulate a digital version of the country’s currency, the yuan. The project, which makes the yuan available digitally, makes China the first country to have a government-controlled and official digital currency. The country aims to reduce the use of cash, which is quite difficult to track, through digital money.
Digital money can be offered to users by both the People’s Bank of China and other banks operating in the country. This currency can be used as a payment method in the country, which is often on the agenda with crypto currency restrictions. Users can check their assets through mobile payment services such as Alipay and WeCaht. China’s digital currency can perform operations such as storage, spending and transfer to other accounts with technologies such as QR.
Why isn’t the digital yuan a cryptocurrency?
China’s digital yuan is a cash-based, centralized currency that is accepted by traditional banks and the country’s government institutions. Digital money includes only some of the features of cryptocurrencies. First, China’s digital currency does not use Blockchain technology. The People’s Bank of China offers the created digital currency with its own signature. The money, which is completely controlled by a central government, does not include the decentralization that is the basic building block of cryptocurrencies.
In addition, transactions with digital money do not take place in decentralized networks, but in systems of traditional banks. Finally, transactions with China’s digital currency are fully recorded. User data can be accessed by the government and analyzed by banks. Cryptocurrency transactions are completely anonymous. For all these reasons, the digital yuan is not a cryptocurrency. It is seen as the “anti-Bitcoin” by many analysts. Meta: What is the digital yuan that has been on the agenda lately? What are the features of the digital yuan? Why is the digital yuan not a cryptocurrency? Here are the details
