China would release its replacement for the recently banned crypto coins. Here are the major details of the new digital yuan! Arrival date and more.
China officially banned crypto transactions in its country because of security concerns. This has been a major decision since China is one of the major countries where blockchain miners are found.
Although this seems to be a negative decision, many experts said that it would still lead to some positive outcomes, such as the arrival of more GPU units from Nvidia and AMD. Ever since the crypto market boomed, many consumers, especially blockchain miners, started to hoard these computer components to have more power and mine more digital coins as possible.
On the other hand, before the massive crypto ban happened, China is not against crypto mining. It even opened its first Bitcoin exchange back in 2011. By 2016, as both a center of trading and a maker of equipment used to mine bitcoin, China was a deeply influential player in the industry.
However, ever since Xi Jinping took over, the Chinese government officials started to go against crypto transactions. Because of this, they all decided to rule over and ban the rising digital coins in Asian countries.
Digital Yuan as China’s Answer To Blockchain Coins
Since China banned crypto transactions, residents still need to have an alternative since digital coins have been beneficial for them ever since the global pandemic began. To meet their needs, the Chinese government said that it would release the new digital yuan. After almost eight years in development, the digital yuan arrived in the wallets of ordinary users in government-led trials last year.
Once it arrives, the crypto alternative is expected to be distributed to consumers by the central bank, which is quite different from how Bitcoin, Ethereum, and other blockchain coins are dispursed to the consumers.
On the other hand, the upcoming crypto replacement would rely on the six major commercial Chinese banks, usually through a wallet app. Users can make payments by scanning QR codes or using wearable devices, including physical wallets that are embedded with digital yuan chips developed by Postal Savings Bank of China, one of the six banks.
When it comes to the release date, China is expected to start distributing the new digital yuan currency starting this coming June 2022. The Chinese government could release around 20 million digital yuan wallets existed, and transaction volume had reached 34.5 billion yuan or $5.3 billion.
On the other hand, here are the three major goals of the Chinese government for the upcoming digital currency of the Asian country;
- It hopes to eventually boost the yuan’s international standing (easier said than done if all else remains the same).
- It aims to regain control overpayments that are increasingly mediated by private firms such as Ant Group’s Alipay and Tencent’s WeChat Pay.
- It wants to gain greater insight into how money is flowing in the country, something that is hidden in cash transactions and even in mobile payments whose data rests with private firms.