China is committed to becoming the world superpower. The country is taking all steps to ensure that citizens of China can make merry regarding their own digital currency. As we all know, the nation has always been driven by technology. It has one of the cheapest labours worldwide that drive the nation ahead of others aggressively. Also, it delivers what it believes through its policies.
Recently, the Chinese government rolled out a circular that said that no one would be able to trade in any cryptocurrency, within or even offshore. There has been a blanket ban, and there’s no denying that the rule will is getting implemented with an iron fist.
The government knows that once it comes into effect, there would be no one stopping the country from getting bigger and better than what it is today. Why we are saying, this is because digital Yuan is already here doing rounds and garnering heaps of praises from experts. Yes, it is the in-house cryptocurrency that has been developed by one of the biggest tech giants of China, Yuan PayGroup.
The company has been instrumental in bringing a trading platform for its country’s citizens known as YuanHype. That has huge potential in the Chinese market because every other cryptocurrency has been banned. Also, the digital Yuan is backed by none other than the government of China, and it raises stakes in it. That’s calling for investments from across the globe.
Now, you can imagine the kind of potential it holds and how it is going to change the world for everyone. Also, it is expecting the neighbouring countries to exhibit their support to their digital currency. It is interesting to know that the digital Yuan is a currency that is one of its kind government-owned. The guidelines, rules and regulations have been set with the help of the government’s discretion. So, it is on the verge to replace the current fiat currency.
Given the population of the nation, it can easily clock more than one billion in the quickest time. Thus, the value of the digital Yuan currency is all set to shoot up beyond the expectations of experts. Not only that, there is speculation that even bitcoin might fall short of its glory. Some veteran traders are of the opinion that it will soon go past USD 100,000 by the end of the year 2021 or in the first quarter of 2022.
So, that’s hype and potential the digital currency of China is showcasing to the world. And it is not that the government came with the idea sometime soon. If we talk about the ban, it came into effect even in 2017. However, it was different from what we see today in more than one ways. Earlier, the government had banned ICOs (initial coin offerings). That was the time when bitcoin was the most popular cryptocurrency and had the maximum investment.
On September 1, 2017, it traded at $5,013.91, while driving to the end of the year, on December 17, 2017, it clocked $19,783.06. Thus, there was not much effect of the crackdown. Instead, people started investing in cryptocurrency in other ways. Therefore, fate didn’t meet the desire of the nation.
However, there was an indication that the government was cooking something bigger. Hence, we can say that the gamechanger official cryptocurrency is the reward of austerity that China has been determined to achieve. Also, the nation chose the right time to launch it officially in June 2021, where the world is finding ways to avert the coronavirus issue. It’s a tactical move from the point of view of China, as the world is seeing economic crisis and shutdowns due to the virus. So, the latest digital currency by China can be a gleam of hope for investment.
Getting back to 2017, despite the curbs and everything, the country remained the biggest den of cryptocurrency mining worldwide. It is believed that almost 60-80 per cent of crypto mining or extraction of digital coins happen in China alone. So, its contribution to the world of cryptocurrencies is visibly understood by everyone.
The government of China wants to seek application of candidates applying for digital currency produced by them. And its preparation started in 2017 when the government introduced the circular of banning. However, the crackdown did not affect much.
China knows that it is always the first that people remember. The inspiration comes from bitcoin. In 2021, when the government ensured everything in its favour and found a strategic timing, it gave the go-ahead to the launch of digital Yuan or E-Yuan by the Yuan PayGroup. It was the world’s first-of-its-kind digital coin, which had its hardships but controls and garnered the biggest market share.
Let’s evaluate it from that perspective, even when other countries launch their personal digital currencies. It will be China that will hold its head high for being a trailblazer in the category. Also, the technology required to extract and mould algorithm have no dearth in China. It has several miners who would now be deployed to work with digital Yuan. Their experience in mining cryptocurrencies like bitcoin would come in handy in producing the new E-Yuan coins.
Interestingly, the China government is spearheading the work for creating its digital currency since 2014. So, there has been relentless hard work behind launching it in 2021, more than seven years of hard work. So, whatever you see today did not come easy. The nation had to initiate many hard decisions for ensuring a safe landing of its pet project.
Precisely, the digital Yuan is an attempt to deregulate the use of currency notes. It will save the money going into the printing notes and ensure security and establish transparency. These two elements are necessary for initiating domination over the world and reach the pinnacle.
The government would fully regulate digital currency. Thus, it will also guarantee a verified status that other cryptocurrencies lack. E-Yuan is the official digital currency of China that can be traded, purchased and sold through YuanHype trading exchange or portal. The country is already advanced in cashless payments. Thus, acceptance of E-Yuan is going to be smooth and seamless. People of the nation are well aware of transactions using digital platforms.
One reason the People’s Bank Of China is rooting for the digital Yuan is that it wants to reduce the systemic risk that may revolve later on. Also, it is looking to give a hard time to private companies like Alipay and WeChat pay that rules the market of digital transactions.
PBOC is looking forward to providing distribute digital Yuan to banks. It is interesting because banks would directly advance them into the hands of consumers. So, circulation would be quick and steady. Also, the control over banks will ensure that no other payment app or platform gets a better opportunity. The Yuan PayGroup will have the best time for its users going forward. The company is a leading powerhouse in managing and organising digital currency. It started its operation for E-Yuan in 2014.
Hence, E-Yuan will be the first centralised cryptocurrency globally to have direct acceptance from more than one billion people. Notably, China has been planning to internationalise its currency and there’s no better way than the digital coin released by it.