Many consider that the future of the world economy lies in cryptocurrencies. This possible reality has been denied by many countries with power in the world, for China the picture is different. And as it has always bet on this technological advance, China launches expansion of the digital Yuan tests, its greatest advance in this regard.
China is known for misbehaving the different new technologies that are emerging in the world. Well, their way of applying these technologies in society is different from the western way.
And in the case of cryptocurrencies, the Asian giant was not far behind in venturing into the crypto ecosystem in its own way.
China and the digital Yuan
China’s foray into the world of cryptocurrencies is viewed with suspicion. This, as updates and advances by the Asian country are generated.
Well, although many analysts consider it positive that China has decided to investigate on its own, in order to create its own cryptocurrency. The truth is that reality is more complicated.
The country’s Commerce Ministry said on Friday that the digital currency, dubbed DC / EP, would be tested in major cities in more developed regions. It is also intended to reach poorer regions, only if that region manages to meet the necessary requirements.
DC / EP stands for Digital Currency / Electronic Payment. And the Chinese government has been trying to feasibly launch this digital currency into its economy for more than 5 years. In search of replacing the country’s physical currency (the Renminbi) with this new cryptocurrency.
The Chinese Ministry of Commerce added that the use of this innovative technology is aimed at boosting the nation’s economy. Thus, China launches the digital yuan.
The reality of the supposed Chinese cryptocurrency
However, there is a stark truth hidden in this news that seems positive. And it is based on the operation of the digital Yuan, as it promises to be a false cryptocurrency.
To understand the reason for this assertion, you have to go back to the basics of the concepts of the crypto world. Since, the revolutionary idea that gave way to crypto technological advances was the decentralization function and that cryptocurrencies are not regulated by financial entities, or government.
However, the digital Yuan does not meet these two essential factors of the crypto world. Well, the members of the bureau Chinese economics claim that the digital Yuan will be controlled entirely by the Chinese government.
It should also be noted that in this case it will be the People’s Bank of China who also has the absolute power to create or destroy the supposed Chinese cryptocurrency.
Well, the People’s Bank of China has started working together with several companies, owned by Tencent, to test the digital Yuan on supermarket platforms. So that food purchases can be made with this crypto currency, this according to reports from CoinDesk.
Do you think that the digital Yuan should not be called a cryptocurrency?