Digital Yuan in Test Phase

[BTC Future 3946]

Chinese President Xi Jinping made a statement last year that blockchain systems would be integrated in financial and industrial sectors of the Chinese economy and that they will play a big part in every national economy of the world. This remark alone made Bitcoin's price rise by $3000 in just a day.

 

Central Bank of China is preparing a digital coin in the form of CBDC (Central Bank Digital Currency). The name of the Chinese digital version of the yuan is DCEP (abbreviation for Digital Currency Electronic Payments). It is a Central Bank Digital Currency, the first of it's kind to be publicly released and actively been tested in many Chinese Cities.

 

The video below explains what are the Chinese government expectations from this.

 

 

 

For the most part, it will have to do with tracing transactions.  The Chinese government will be able to know how the money was spent, where they began, and where they ended.

 

The digital yuan will be issued on mobile wallets and they can be loaded from the bank and users will be able to transact with their mobile wallet. Bank of China has explained that the DCEP digital yuan coin won't operate on P2P model. Transactions won't be anonymous and they would require authorization from the centralized banking system of the country. All transactions will be traceable and their authorization along with the state of the wallets will be under total government control.

For sure we can say that paper-cash will be over soon and this is the beginning of a transition to a completely digital era of finances. Many opportunities will arise and many new businesses will appear. The use of blockchains creates transparency but the centralization of finances to any government will be an issue that only decentralized cryptocurrencies as Bitcoin might be able to counter.

 

[bitcoin-shark 1928]

I am happy that China has made this decision to make the virtual Yuan and I hope there will soon be a real date for its release from the rest America does not want to fall behind and I am sure that they too will put the virtual dollar on the market as soon as possible. to see this competition can only do well to end users

[BTC Future 3946]

3 hours ago, bitcoin-shark said:

I am happy that China has made this decision to make the virtual Yuan and I hope there will soon be a real date for its release from the rest America does not want to fall behind and I am sure that they too will put the virtual dollar on the market as soon as possible. to see this competition can only do well to end users

The problem though, is that with a digital national coin, you will have to put all your trust that your government, along with every future government that you will ever have, will be totally honest with your money. It is similar to trusting the banks completely and for all your life. I know that there are people that do that and I don't think they have any hope. Anyone can do as he pleases and can trust his government completely with all of his money. I will choose to be my own bank.

[Mwangi 5611]

It was and its a matter of time every currency in the world be able to hand the early adoption it is so because the world is going to change and with it its going to bring in new means of change and to me I tend to believe its going to be more on crypto currency 

[Omar Ommeish 4872]

This is good news, and I like dealing in currencies that are launched by governments because they are reliable and I do not think that the value of these currencies can suddenly decrease.

[Raqeebzy 6456]

I don't think all these digital dollars, Euros, Yuan should be considered as cryptocurrency even as they are proposed to be blockchain driven. They lack decentralisation, anonymity and transparency. It won't get people out of financial captivity, it's just a way to minimise the adoption of cryptocurrency. Partial, I don't see this a a good news.

[Moaz 7239]

Of course, this is great news for crypto if it is correct, but I heard such news about a year ago and it did not happen, I hope that China will become positive about crypto and launch its cryptocurrency soon.

[Whited35 15285]

2 hours ago, Omar Ommeish said:

This is good news, and I like dealing in currencies that are launched by governments because they are reliable and I do not think that the value of these currencies can suddenly decrease.

@Omar OmmeishHmm, mate ! Quite clever idea that you mean to say government backed digital currency will be reliable 😜! Well, if China issues the digital Yuan, it would not just affect the China , I think it would have the potential impacts in entire South Asian countries and other countries like Japan, South Korea etc. So let's hope the best for them. 

[Crypto123 0]

On 6/15/2020 at 12:13 PM, BTC Future said:

The digital yuan will be issued on mobile wallets and they can be loaded from the bank and users will be able to transact with their mobile wallet. Bank of China has explained that the DCEP digital yuan coin won't operate on P2P model. Transactions won't be anonymous and they would require authorization from the centralized banking system of the country. All transactions will be traceable and their authorization along with the state of the wallets will be under total government control.

 

In fact, this news is two-faced: The first is good, which is the transition of governments to the digital currency and the end of the era of fiat currencies. This is a great achievement and a very important development.
The bad side is the government's complete control of the digital currency and the control of all transfers and financial transactions. Also, the transactions will not be anonymous and you will need permission from the country's central banking system.
This is a greater grouping of power and centralization in the hands of the government, and it is understandable because all governments are against decentralization and anonymity. I think this will be a big challenge for bitcoin. It is more like a battle between decentralization and centralization. Let's wait and see who will be the winner in the end.

Edited June 17, 2020 by Crypto123
correction

[Ridam 7455]

Well I don't see any greater advantage of this coins like Crypto, as all transactions are authorized by government and which is seems similar to the digital currency. An if the main reason of Crypto decentralisation wouldn't be implemented i Don't think it would help Chinese people with anonymity.

[malik6314193 5449]

This is good news for crypto lovers. That a big economical power is going to take his part in crypto currency. 

Every country did not accept crypto because of it's anonymous but China solved this problem by creating it's own crypto currency. I think every country should follow China. 

[CryptoLover21 0]

Yes, this is the good news for all of the Chinese people because they are very ahead in the technology and their own cryptocurrency can help them a lot financially. Creating own cryptocurrency is great opportunities and it will be safe and reduces the number of scammers.

[magd 5231]

China is the most influential country in the world economy and launching its own cryptocurrency will make the crypto market more robust and reliable, and Bitcoin will have a very huge competitor. In this video, convincing reasons for this bold step have been clarified and I am waiting for this currency to be officially announced.

[Iriswolfgang 200]

20 hours ago, BTC Future said:

Chinese President Xi Jinping made a statement last year that blockchain systems would be integrated in financial and industrial sectors of the Chinese economy and that they will play a big part in every national economy of the world. This remark alone made Bitcoin's price rise by $3000 in just a day.

 

Central Bank of China is preparing a digital coin in the form of CBDC (Central Bank Digital Currency). The name of the Chinese digital version of the yuan is DCEP (abbreviation for Digital Currency Electronic Payments). It is a Central Bank Digital Currency, the first of it's kind to be publicly released and actively been tested in many Chinese Cities.

 

The video below explains what are the Chinese government expectations from this.

 

 

 

For the most part, it will have to do with tracing transactions.  The Chinese government will be able to know how the money was spent, where they began, and where they ended.

 

The digital yuan will be issued on mobile wallets and they can be loaded from the bank and users will be able to transact with their mobile wallet. Bank of China has explained that the DCEP digital yuan coin won't operate on P2P model. Transactions won't be anonymous and they would require authorization from the centralized banking system of the country. All transactions will be traceable and their authorization along with the state of the wallets will be under total government control.

For sure we can say that paper-cash will be over soon and this is the beginning of a transition to a completely digital era of finances. Many opportunities will arise and many new businesses will appear. The use of blockchains creates transparency but the centralization of finances to any government will be an issue that only decentralized cryptocurrencies as Bitcoin might be able to counter.

 

They are trying to pioneer a cryptocurrency that will only be circulated within their country and that is why theybare trying to cut cryptocurrency from their country because they are trying to create all by themselves and I think that it could affect the whole cryptocurrencies 

[rekter 8129]

4 hours ago, malik6314193 said:

This is good news for crypto lovers. That a big economical power is going to take his part in crypto currency. 

Every country did not accept crypto because of it's anonymous but China solved this problem by creating it's own crypto currency. I think every country should follow China. 

I don't think so, as this has nothing to do with anonymity, or even pseudonymity that crypto people love. This is scary stuff where the governement tracks your every purchase with their centralized tracking tool.

 

This is why bitcoin wins in a long run, it's unstoppable and permissionless. It's the opposite of this. 

[Crypto123 0]

10 minutes ago, rekter said:

I don't think so, as this has nothing to do with anonymity, or even pseudonymity that crypto people love. This is scary stuff where the governement tracks your every purchase with their centralized tracking tool.

 

This is why bitcoin wins in a long run, it's unstoppable and permissionless. It's the opposite of this. 

Yes, this is completely true, some people rejoice when they hear that a country has created its digital currency, but in reality this is the opposite of what they think because it is a concentration of power much more than before, and the abolition of all the wonderful features that we got with bitcoin and cryptocurrencies, which is why many governments work These days create their own digital currency.

[BTC Future 3946]

10 hours ago, rekter said:

I don't think so, as this has nothing to do with anonymity, or even pseudonymity that crypto people love. This is scary stuff where the governement tracks your every purchase with their centralized tracking tool.

 

This is why bitcoin wins in a long run, it's unstoppable and permissionless. It's the opposite of this. 

This is what I've tried to say and the whole post is about the Chinese government controlling the finances of their population. Imagine a country like China that hunts down political dissidents being able to block their finances as well. It will be ok you can go against us and be pro-democracy. Do whatever you want but we are cutting you off from the financial system. Good luck. 
Not that other countries won't try the same. We can't trust them because this is not just about now. I don't trust anyone to be honest, but let's say that people trust their government. They trust them now though.
These new forms of centralized national currencies mean that people will put their absolute trust concerning their finances not just on their current government, but to anyone that takes control of their government forever! 
It is not just putting our trust for the rest of our lives but putting the trust of our children and any other generation, to any government we ever have, no matter if it is a democratic, a leftish, an extreme right, a Kim Yong Un, or the next Hitler.
This is unacceptable.

Edited June 16, 2020 by BTC Future

[Nezar 7169]

China’s creation of its own cryptocurrency is great and very impressive, and I am anxiously awaiting the announcement of the launch of this currency, and I believe that establishing this currency will be a step for many countries to start creating their own cryptocurrencies.

[Nab 263]

China is one of the countries where most of blockchain's projects are carried out since most of the world's mining companies are located in this country,besides the fact that many Chinese exchanges are offering very good  services, the bank of china is implementing its digital currency to offer financial services throughout the country.

[kyoukage01 3181]

 

On 6/16/2020 at 10:00 AM, Crypto123 said:

In fact, this news is two-faced: The first is good, which is the transition of governments to the digital currency and the end of the era of fiat currencies. This is a great achievement and a very important development.

If we go by the strict meaning of the fiat currency (https://en.wikipedia.org/wiki/Fiat_money), then the era of fiat currencies will not end; rather, it has merely transitioned into digital form. Still, this would be a great achievement indeed, since it would mean we are getting close to some futuristic Hollywood movies' depictions of money being used digitally instead of paper.

 

On 6/16/2020 at 10:00 AM, Crypto123 said:

The bad side is the government's complete control of the digital currency and the control of all transfers and financial transactions. Also, the transactions will not be anonymous and you will need permission from the country's central banking system.

Knowing China's type of government, the government's control of the digital currency has huge ramifications. As pointed out by @BTC Future on this post, any dissident action a certain person makes may result in his funds being cut off by the state. I might get too political if I go on beyond this point, so I'll stop and just say that ordinary people outside China will not like this notion if ever their own currencies get digitized in the same fashion as the DCEP digital yuan coin.

 

11 hours ago, BTC Future said:

It is not just putting our trust for the rest of our lives but putting the trust of our children and any other generation, to any government we ever have, no matter if it is a democratic, a leftish, an extreme right, a Kim Yong Un, or the next Hitler.

ROTFL!!! 🤣🤣🤣

 

But on a more serious note, whether we crypto users make dealings with the digital yuan if it is ever released to the global public in the future will determine its future fate. If we don't trust the digital yuan and its global growth gets slowed, then in a way, we can show our displeasure in the potential use of the coin for governmental suppression of the people.

 

[Crypto123 0]

33 minutes ago, kyoukage01 said:

If we go by the strict meaning of the fiat currency (https://en.wikipedia.org/wiki/Fiat_money), then the era of fiat currencies will not end; rather, it has merely transitioned into digital form. Still, this would be a great achievement indeed, since it would mean we are getting close to some futuristic Hollywood movies' depictions of money being used digitally instead of paper

Exactly my friend, this is what I meant by it is a battle between decentralization and centralization. Certainly, digital currencies are better than Fiat money in terms of ease of transferring and dealing with it as well as they are not perishable or transfer diseases like paper money, and these are really good features but they do not mean that we have finished the era of banknotes, but we have moved to an era of more technical development, but centralization, authority and control remain in the hands of governments and banks exactly as it is now in the system of banknotes.

[TimopheyKa 3900]

I think this is a very good idea! In General, China is doing well, and they are trying to actively use the blockchain system. I think that this news will help other countries to actively create their own digital currency on the blockchain system! It would be very cool and I'm looking forward to seeing it!

[Honny143 13612]

On 6/15/2020 at 3:06 PM, bitcoin-shark said:

I am happy that China has made this decision to make the virtual Yuan and I hope there will soon be a real date for its release from the rest America does not want to fall behind and I am sure that they too will put the virtual dollar on the market as soon as possible. to see this competition can only do well to end users

Yes mate I am also read the article where USA announced they also want to launch digital dollar, to do the transaction easy now China also try their own currency in digital yuan, means both are doing battle for no1 position because both are want became super power in the worid, but its really good for China users.

[BTC Future 3946]

20 hours ago, MarsDota2 said:

Since the China already legalized the crypto currency on their country it is a good thing but the bad thing about it is the miners there has a low income not like the miners here. I hope that they can solve the issue about the miner.

I've read that before but it isn't true. China has not legalized cryptocurrencies, but they have them banned since 2017. The only digital currency they allow is this CBDC.

[DiamondBit 720]

On 6/27/2020 at 11:55 AM, BTC Future said:

I've read that before but it isn't true. China has not legalized cryptocurrencies, but they have them banned since 2017. The only digital currency they allow is this CBDC.

You are right, China are even not ready to legalize crypto, but they are working towards advancing block chain and also working towards creating their own coins.