Kataryna Kovtun July 10, 2020
Why does China need its cryptocurrency, how did COVID-19 influence its creation, and what does McDonald’s and Starbucks have to do with it?
Read below everything you need to know about the digital yuan.
What is a national cryptocurrency?
The national cryptocurrency of the country is a digital-analogue of the official currency that works on the blockchain.
When did work on the digital yuan begin?
The People’s Bank of China claims to have begun developing the national cryptocurrency in 2015. In April 2020, the digital yuan in test mode became available to customers of the “white list” of the Agricultural Bank of China in the four pilot districts of Shenzhen, Xiongang, Chengdu, and Suzhou.
How to test the national cryptocurrency of China?
The testing program of the People’s Bank of China’s digital payment system takes place in two stages. For this, the financial regulator has partnered with four commercial banks and three telecommunications companies. They developed independent strategies for introducing digital currency into the country’s economy.
How has COVID-19 influenced the development of digital yuan?
The digital yuan development program, scheduled for the first quarter of this year, was delayed due to quarantine imposed due to the coronavirus COVID-19.
How do the country’s authorities relate to cryptocurrencies?
In Autumn 2017, the Chinese government closed large crypto-exchanges and banned ICOs, after which over 90% of primary token placement projects returned funds to investors. The activities of miners are also impeded and suppressed by the authorities. However, there is no direct ban on the extraction of digital money.
Which companies will work with digital yuan?
In April 2020, it became known that 19 retail companies from the catering, retail, and entertainment sectors could be involved in testing the digital yuan. These include Starbucks, McDonald’s, Subway, and the JD online store. Read more here.
When will the digital yuan be released?
In May 2020, rumours appeared that China had accelerated the development of a digital yuan to rebuild the economy after the COVID-19 pandemic and counter potential US sanctions. The People’s Bank of the country denied this information and said that the established launch order does not exist.
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