Digital Currency: China became the first country to launch Digital Currency
Digital currency is the new advancement that can transform the way of money transactions. The increase of usage in Bitcoin and other types of cryptocurrencies that are present in electric form has stimulated global central banks to analyse the possibility of digital currencies. China has started issuing digital currency to the residents and becoming the first country to launch the blockchain version of the Chinese currency called digital yuan. Controlled by the Central bank, it is unique from other cryptocurrencies due to the absence of secrecy and untraceable nature. Interested in this innovation? Keep reading below to know more.
About Digital currency:
- Digital currency is the type of currency that’s present completely in electronic form. Several countries have adopted electronic versions of currency in their financial systems. There has been effective launch and working of decentralized cryptocurrencies such as Bitcoin and Ethereum, that have value but are not overseen by the government officials. Hence, Governments and central banks across the globe are analysing the probability to develop their digital currency. It is a notable fact that China is not only the nation across the globe that has started the process of generating its digital currencies.
- The US is actively working with experts in the field to introduce its new form of digital dollars. There have been real-world trials happening in Sweden to develop their version of the digital currency form of Krona. The sand dollar is the currency of the Bahamas, which is also working in introducing a full version of digital currency. Several other countries across the globe are working with their financial systems to introduce their version of digital currency. But China is the first country to launch digital currency in functional form across several parts of the country which makes the world turn around.
About the launch of digital currency in China:
- While there were many speculations that bitcoins are not as simple to be used, the Chinese digital yuan is not the same. It would work along with the already existing payment apps such as Apple pay, Alipay, WeChat pay that are already present in the country. These apps will need money to be deposited in the digital wallets from the banks to accumulate the funds and use them by a scan of QR codes.
- The major motive of the introduction of the digital yuan as the digital currency is to reduce the transaction of paper currency in the nation, which is already reduced due to usage of the apps. The digital currency will not impact the regular physical currency that is invested in banks for prolonged periods. But the amount will be circulated through commercial banks across the nation. To get access to digital currency, various other banks should deposit definite amounts in the Public Bank of China.
- The Chinese government has the vision to track the illegal movement of resources as digital currencies will be distributed throughout the nation. It will provide them clear visibility to check the flow of money in the entire economic system. They can channelize on trying new things by introducing precise strategies on specific economic classes or regions.
- The primary trials began in parts of Shenzhen and other parts of China majorly with ride-sharing and food delivery apps with smaller amounts of transactions allowed via digital yuan. But the accurate minimum amount is not fixed yet but China has declared the second stage of the trial where the customers can ask for digital currency via their respective banks. China has a wide focus on globalizing the currency in some days and stimulates people to use this currency in making worldwide payments.
What are the major advantages of using Digital Currency in a country?
Fast and flawless Transactions:
This is highly beneficial in situations of making larger payments where there will be a requirement of multiple steps before the transaction to be completed. These highly tedious processes will not be included with the use of digital currencies as you can complete payments without the aid of any bank or lawyer.
Safeguarding from frauds:
It is a regular practice of consumers to use their debit or credit cards for making payments to their online purchases. While it is a highly used mode, there is always a risk of malicious tracking of your personal information. But with the use of digital currency, there will not be any such risk as you will be able to push the funds directly to anybody in need without shelling out any extra and sensitive information.
Continuous tracking of Payments:
Bank systems will let you see the transfer of money that is done via cheques or lend the money only after a specific amount of time. This would be a blockage in clear visibility about the flow of money at a needed instant. But with the introduction of digital currency, there will be more clear visibility for your money during any kind of transaction as you can easily and constantly track the transaction money when needed.
No additional fees involved:
Even though the money you deposit in the banks is yours, banks will not perform this task free of cost. Hence, they will charge various fees for performing various transactions and you may feel that it is highly unfair to be paying fees for using your own hard-earned money. With the use of digital currency, the ownership will be in the hands of the users and both the banks. Therefore, there will not be any additional fees for transacting with your money with digital currency.
Bottom line:
Due to the wide range of benefits, many governments across the globe are looking forward to implementing digital currency. If you are looking to perform innovations in this segment, you have to associate with a reliable and experienced app and Mobile app development company in India like Brillmindz. They have a passionate team that is renowned to develop many inventive products that have transformed the brand value of esteemed clients.
