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Recently, China has announced the arrival of their primary digital fiat currency with the most secured facility known as a two-step authentication system. With the help of this system, another user can’t access your account because the platform will ask you for permission before conducting any transaction. If you are interested in Digital Yuan, then consider Understanding Digital Yuan-Everything You Want to Know.
Developers launched this feature after converting 25 Yuan into digital currency by using Blockchain Technology, a platform that is used for digital currency all around the world. Despite being the world’s most secure cryptocurrency, as in China, it has not chosen to function in a currencies-free economy; however, it will be officially announced within the next year by the government of China.
In China, the current currency is available free to use by anyone; in other words, it is circulating freely in the present economy; however digital Yuan will not be circulated freely. But still, it is far better than any other currency because it is safe and secured with the latest technology. The first 25 Yuan was converted by authorities into digital Yuan on 3rd December 2017 in Guangzhou province of China. It was the first time any country launched a digital currency.
What is Digital Currency Exchange?
Digital currency exchange is a website where you can exchange your local currencies into Digital Yuan and vice versa by using your mobile phone. It is like a free market where you can buy and sell in your local currency and receive what is suitable for you. When you wish to convert your money into digital currency, you can buy it from someone who wants that particular currency. When you wish to convert it, you can sell it to someone who wishes for that particular currency.
It is a simple process where you must register and follow all the instructions. There are numerous reasons why people choose to use digital Yuan; however, among all the reasons, ‘transparency’ might be the best.
Since it is a government-regulated currency, there will be no risk of fake currency. Thus you can use this currency without any fear. Also, this currency has a record system that the network can use to track the history of transactions. Therefore, if any transaction is illegal or fraudulent, it can be tracked back and punished by the government.
Transmission of monetary policy:
The government, through the central bank of china, has set the rules and regulations for digital currency. It is an example of a very efficient policy to deal with inflation and reserves. The two-step authentication system will provide safety for you; if you hold more Yuan than the amount you have converted and proved by using your phone, no one can access your account without consent. If you have converted your Yuan and you hold a lot of Yuan, then no one will be able to convert it into his local currency.
It is because the digital currency is only available to selected people with an identity card which proves them as a resident of China. When you have this identity card, you can purchase it in any store as it is government-sanctioned. Therefore, it is safe for no one to force their death or any crime against you because your money has been converted into digital currency.
People can make transactions quickly and easily; you can use your mobile phone to conduct transactions, it will have all the records of your transactions, and no one can manipulate it without your authority. This currency will be accomplished by the end of 2017, and the government has promised that within the next year, it will be used in major cities so that people can become more comfortable using digital currency in their everyday lives.
Trustworthy Currency in A Very Conflicted World:
The government of China announces the launch of this digital currency for two reasons:
It will compete with other digital currencies in this world which will eventually help bring up the value of the Yuan as it is the first primary currency to launch such a currency. The other reason behind launching the digital Yuan is that some companies from China have been accused of exporting Yuan illegally by using digital currencies. Therefore, by controlling the use of the digital Yuan, it will help the government to control such illegal activities in China.
Some people might argue that it is not a currency; however, it is because, in China, you can do anything with this currency. For example, you can transfer it to anyone, and you have no limit to using it anywhere; however, in some countries like the USA, you cannot conduct any transaction without first converting your digital Yuan into local currency.