Greetings friends, it is easier to think about digital money because that way we interact more with it, there are many digital payment platforms such as apple pay and pay-pal, China wants to take this to another level in its need to eliminate bills and coins, like this that China began to transform its national currency into a computer code.
The digital yuan resides in cyberspace and its appearance on the screen is the silhouette of Mao Zedong similar to that of paper money, it is available on smartphones for use by a single person per device or cards for the less skilled with technology, to to use the money is not necessary the internet.
The government has been giving donations to see how people interact with the digital Yuan, according to reports Starbucks and McDonalds received much of that money.
It can be used to track people's spending in real time, this will make it easier to find criminal activities, so they are advantages for a government that seeks to control its population like that of China, the idea of the digital yuan is to have the advantages of cryptocurrencies but do not fall into anonymity, so it refers to its advantages of use.
We have to understand that there is still a long way to go for this, but the idea of the Chinese government was born in 2014 and was saved until 2019 when the plan began, the idea is that only the central bank of China can issue the currency, the idea is that there is no speculation or investment, it is not a cryptocurrency, it is a digitization of a currency.
This represents a threat to the world, as analysts compare the case with Uber, when Uber arrived in different cities of the world the local taxi drivers were displaced, so if people from different cities of the world start to trade with the digital yuan this can threaten local economies, it can also threaten the hegemony of the dollar.
The United States government is already studying the case and it is believed that, just as it stopped the cryptocurrency of Facebook, it will seek to overshadow this Chinese idea.