Cryptocurrency News

China Speeds up the CBDC Process

Due to the spread of the COVID-19 pandemic all over the world, countries from all over the world have learned many lessons. One of the most important lessons the economic giants have learned is the importance of having access to digital and remove currencies.

The countries have realized the importance of having access to digital currencies. When it comes to having digital currencies, what could be a better option than a country having its own CBDC? There are now many countries from all around the world that are attempting to gain supremacy in CBDC adoption.

At the moment, countries such as Russia, Georgia, Switzerland, Venezuela, and Canada are in a marathon. Each country is trying to defeat the other in the race to achieve the central bank digital currency launch goal.

However, the country with one of the largest economies ‘China’ has no match when it comes to CBDC adoption. China is the only country that has made a lot of developments in launching its digital yuan. It was only the 2nd quarter of 2020 when the central bank of China shared its intentions of launching a CBDC.

From that point onwards, China has managed to develop and launch its CBDC in the pilot phase. Since September of 2020, the digital yuan has been undergoing several tests and pilots to check the scalability and operability of the digit yuan system.

Towards the end of the year 2020, the Chinese central bank had announced the launch of its pilot in several provinces of the country. After gathering successful results and outcomes from the initial/domestic pilots, CBDC was processed through the international channel.

It was announced by the central bank of China that it will be carrying out a pilot phase for the cross-border transactions, for the digital yuan.

Right at the beginning of the year 2021, the Chinese central bank has announced that it has now initiated a pilot in one of the Chinese cities. The pilot is being carried out in Shenzhen where 100,000 citizens have been granted 300 digital yuan. The citizens will be able to use digital yuan at different stores that have the ability to accept digital yuan.

Based on its recent developments and success in the CBDC space, many analysts and commentators have made their predictions. The majority of the predictions made by the analysts seem to be unanimous. Ever since the election took place in the United States and Biden got elected as the 46th President, China has expedited its process of digital yuan adoption.

According to analysts, China is doing this to gain economic supremacy and power over the rest of the countries. At present, America is far from accepting the crypto-blockchain industry, let alone launch its own CBDC. Any country that manages to launch its own currency before the rest, will eventually gain an upper hand in the global economy.

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